Effectiveness of human resource accounting information in promoting the trade in shares and securities in India

This paper set out to examine the contribution of human resource accounting information to investor decisions in the Indian stock markets. In order to find out whether individual investors actually use the human resource accounting information disclosed in the corporate financial reports when they make investment decisions related to buying, holding, or selling shares in the Indian stock markets, a questionnaire survey was addressed, and interviews were conducted both with small investors and with unofficial and official brokers. In this study the stock investment decisions were affected by the inclusion of human resource accounting information to conventional published financial statements of a company. Most of the respondents stated that a higher investment in human resources was an influential factor affecting their choice of a company for investment purposes.