The Voluntary Disclosure of Human Capital and Its Impact on the Market Value of Companies

Human resource accounting is only an attempt to ascertain the cost and value of the company’s human resources in terms of expenditures incurred through employment, social welfare, training, development, compensation, etc., in addition to trying to judge the contribution of these factors to the economic value of the company. This research aims to study the effect of human resource variables, compensation, and welfare of employees, training expenses, and profits after tax on the value of the company. Both market capitalization and total assets were used to determine the value of the company, and 40 companies were chosen from the Iraq Stock Exchange for the year 2018 to research. To achieve the research objectives, a multiple regression model was used. This research found that compensation to employees has no significant impact to affect the market value, while employee care and training expenses and profits have a positive and significant impact on market capitalization. The current research also revealed that employee compensation has a significant and negative effect on total assets, while employee care and training expenses and post-tax profits affect morally and positively the total assets.