Labor Cost Stickiness and Managerial Decisions on Human Capital Adjustment

This study examines the value relevance of voluntary human capital disclosure (VHCD) in 32 European markets during the period between 1997 and 2012. VHCD allows capital market participants to evaluate the intellectual capital of disclosing firms by allowing them to assess the competitiveness of firm’s human resource strategy and the productivity of workforce vis-à-vis the benchmark. The results provide strong evidence suggesting that market participants consider VHCD to be value relevant and incorporate changes in labor cost information into their pricing decisions.

Download Full-text

Cost Stickiness in the New Zealand Charity Sector

The International Journal of Accounting ◽

10.1142/s1094406019500124 ◽

2019 ◽

Vol 54 (03) ◽

pp. 1950012

Author(s):

Ahsan Habib ◽

Hedy Jiaying Huang

Keyword(s):

New Zealand ◽

Social Impact ◽

For Profit ◽

Managerial Decisions ◽

Not For Profit ◽

The Social ◽

Wide Range ◽

External Stakeholders ◽

The Cost ◽

Cost Stickiness

We investigate whether New Zealand charities exhibit cost stickiness, conceptualized as cost increases in response to an increase in income that are greater than the cost decreases associated with an equivalent decrease in income. Drawing on the holistic accountability rationale, we posit that charity managers consider themselves accountable to a wide range of stakeholders and, therefore, are more concerned about the social impact of their managerial decisions. As a result, charity managers will be reluctant to adjust resources downward immediately after an income drop, as such decisions could lead to the loss of trust and confidence of their internal and external stakeholders. Based on a large sample of charities in New Zealand, we find evidence of cost stickiness. Importantly, we find that cost stickiness varies across a number of characteristics of charities, including charity size, sources of income and expenditure, crisis periods, and the sectors within which the charities operate. Our study contributes to a hitherto unexplored setting and provides empirical evidence on the theoretical debate of hierarchical versus holistic accountability in the not-for-profit sector.

Download Full-text

Trade Liberalisation and Human Capital Adjustment

SSRN Electronic Journal ◽

10.2139/ssrn.1028693 ◽

2007 ◽

Cited By ~ 1

Author(s):

Rod Falvey ◽

David Greenaway ◽

Joana Silva

Keyword(s):

Human Capital ◽

Trade Liberalisation ◽

Capital Adjustment

Download Full-text

STUDY OF DEVELOPMENT AND RESEARCH OF MANAGEMENT SOLUTIONS FOR INVESTING IN HUMAN CAPITAL

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.04.02.003 ◽

2021 ◽

Vol 2 (4) ◽

pp. 18-21

Author(s):

E. N. GORBATENKO ◽

◽

S. V. NIKIFOROVA ◽

O. A. POLIKANOVA ◽

◽

...

Keyword(s):

Human Capital ◽

Managerial Decisions ◽

Theoretical Approaches

The article highlights the theoretical approaches to making managerial decisions on investing in human capital. The types and types of investments in human capital are considered, an overview of scientific opinions on the issue of investing in human capital in various fields of activity is given.

Download Full-text

Gamification as a tool of commercial bank staff economic activity and stimulating

International Review ◽

10.5937/intrev2003137g ◽

2020 ◽

pp. 137-144

Author(s):

Borisovna Guseva ◽

Azatovna Khaziakhmetova

Keyword(s):

Human Capital ◽

Commercial Bank ◽

Economic Activity ◽

Alternative Methods ◽

Modern Trend ◽

Progressive Movement ◽

Managerial Decisions ◽

Bank Staff ◽

New Generation ◽

Stimulation Of

Human capital is one of the key factors for an organization's success in modern economic conditions. Its formation and implementation depend on the policy of the enterprise in the field of personnel management. Complexity and ambiguity of intra-personal processes - the carrier of human capital determine the necessity of progressive movement in the direction of research of cause-and-effect relations between managerial decisions, corporate environment, and the reaction of personnel to it in the forms of activity on the transformation of the human capital of a personality into the capital of the same name of organization and created value. Well-known tools of influence on the mentioned processes consist in the realization of mechanisms formal and informal influence and the creation of conditions for successful stimulation of economic activity. Digitization is the modern trend of economic reality in the behavior of the new generation of personalities of staff. This means the devaluation of the tradition of obedience in response to the priorities of freethinking, determination, uncompromising, creativity and independence, the reference point to "easy", "game" attitude to professional and everyday situations. All this determines the daily habits, interests, properties of reaction to the stimuli of human activity determine the necessity to choose alternative methods of influence from the authoritarian ones. In this regard, the development of the theory and methodology of gamification of the employee's activity in the organization is seen as relevant. The presented article is devoted to the research of gamification's methodology of management in a system of non-material stimulation of commercial bank personnel.

Download Full-text

The Moderating Effect of Prior Sales Changes on Asymmetric Cost Behavior

Journal of Management Accounting Research ◽

10.2308/jmar-50726 ◽

2014 ◽

Vol 26 (2) ◽

pp. 221-242 ◽

Cited By ~ 91

Author(s):

Rajiv D. Banker ◽

Dmitri Byzalov ◽

Mustafa Ciftci ◽

Raj Mashruwala

Keyword(s):

Adjustment Costs ◽

Theoretical Explanation ◽

Managerial Decisions ◽

Empirical Estimates ◽

Cost Behavior ◽

Asymmetric Cost ◽

The Impact ◽

Cost Stickiness ◽

Asymmetric Cost Behavior ◽

Sales Increase

ABSTRACT Recent research documents the empirical phenomenon of “sticky costs” and attributes it to a theory of deliberate managerial decisions in the presence of adjustment costs. We refine this theoretical explanation and show that it gives rise to a more complex pattern of asymmetric cost behavior that combines two opposing processes: cost stickiness conditional on a prior sales increase, and cost anti-stickiness conditional on a prior sales decrease. These predictions reflect the structure of optimal decisions with adjustment costs and the impact of prior sales changes on managers' expectations about future sales changes. Empirical estimates for Compustat data support our hypotheses. We further verify our predictions using additional proxies for managers' expectations, and show that our model offers important new insights. JEL Classifications: D24; M41.

Download Full-text