Significance of Human Capital Reporting in Investment decisions: Bangladesh Perspective

Most managers would agree that Human Capital (HC) has an impact on the company's bottom line and it, being a valuable resource, influences investment decision as well. To evaluate the connection of this belief and practice, we have articulated a research study aimed at investigating the impact of Human Capital Reporting (HCR) by the listed companies of Bangladesh on the investors. With a view to collecting data a 5 point Likert Scale questionnaire was designed with 20 variables. Chi-square statistical technique was used to test the variables at 5% level of significance. The results show, although in Bangladesh HCR is struggling to be accepted, it can be used as a process of measuring data on human resource, that a stable management and trained employees can improve the shareholders’ wealth and also that the investors can make more rational decision if it is made a compulsory element of financial reporting.