Industries and countries experience a shift from manufacturing to service and techno logy based systems. Intangible assets like human and social capital become relatively important drivers of value. Furthermore, new accounting standards create a need for a standardized valuation of intangibles. The raise of hidden values develops into an important issue especially in business combinations. Financial statements provide very few information about human or social capital, but shareholders and stakeholders become more interested in these information. When a company acquires another, a single price is paid for a bundle of assets. The price reflects the firm value as a whole at a specific date, but the particular values of the individual assets are seldom transparent. Furthermore, intangibles receive 50% to 70% of an average firm’s annual investments, but the possible achievements are not shown in the balance sheet. Thought, it is crucial to company success. This paper will analyze different methods for valuing human and social capital. Different approaches will be described and the suitability for valuation will be evaluated. The focus will be on a company’s human and social capital, because the value of personnel human and social will not contribute to the problem solving.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Problem and Objectives of the Paper
- Methodology of Analysis
- Conceptual Principles
- Definition of Human Capital
- Definition of Social Capital
- Valuation Methods of Human and Social Capital
- Methods for Appraising Human Capital
- Company Value Method
- Weighted Cost of Human Resource
- Value of Future Earnings
- Human Resource Accounting
- Human Assets and Human Capital - A Relationship
- Real Options
- The Appraisal of Social Capital
- The Capital Side of Social Capital
- The Role of Intrafirm Networks
- Interfirm Networks
- Human and Social Capital within the System
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper explores the valuation of human and social capital. It aims to define these concepts, analyze the methods for appraising them, and investigate their significance within a business system.
- Definition and conceptualization of human and social capital
- Methods for appraising both human and social capital
- The role of human and social capital in business operations
- The relationship between human assets and human capital
- The importance of networks in leveraging social capital
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The paper outlines the problem of valuing human and social capital and sets forth the objectives and methodology of the analysis.
- Conceptual Principles: This chapter provides definitions of human capital and social capital, outlining their fundamental characteristics and significance within a business context.
- Valuation Methods of Human and Social Capital: This chapter focuses on the various methods used to appraise human capital, including the company value method, weighted cost of human resources, value of future earnings, human resource accounting, and real options. It also explores methods for appraising social capital, highlighting the role of networks within and between firms.
- Human and Social Capital within the System: This chapter examines the interconnectedness of human and social capital within the broader business system, exploring their influence on organizational performance and strategic decision-making.
Schlüsselwörter (Keywords)
This work focuses on the valuation of human and social capital, exploring various methods, including company value, weighted cost of human resources, future earnings, human resource accounting, real options, and network analysis. The paper emphasizes the importance of these concepts for understanding organizational success and strategic decision-making.
- Arbeit zitieren
- Florian Voigt (Autor:in), 2004, Valuing human and social capital, München, GRIN Verlag, https://www.grin.com/document/47653
