A Review of Literature Regarding the Connection between Human Resource Accounting and Corporate Performance of Firms

The evaluation as well as the estimation and reporting of cost and value of people in the organization setting is known as Human Resource Accounting (HRA).

The need for this form of accounting is eminent because, with the presence of all the other factors of production, little or nothing can be achieved in an organisation without the contribution of man hence the need to measure and account for human resource. The main objective of this paper is to review extant literature on the nexus between HRA and corporate performance of firms. Many studies have indicated the impact of human resource accounting on the performance of the firm. This review also found that, lack of precision in current measurement practices about what should be reported about HRA or what constitutes HRA, has created a room for researchers to use varying proxies for HRA leading to mixed results in their findings. This review therefore recommends further research into this area to fill the gap in literature.