*Corresponding author: Shreelatha H R Department, Surana College P G Department, Bangalore ISSN: 0976-3031 Research Article DISCLOSING HUMAN RESOURCE ACCOUNTING-EFFECT ON STOCK INVESTMENT DECISION Shreelatha H R* 1 ., Ratna Sinha 2 and Seema Sambargi 3 1 Department, Surana College P G Department, Bangalore 2 Visiting Faculty, Bangalore 3 Adarsh Institute of Management and Information Technology Bangalore DOI: http://dx.doi.org/10.24327/ijrsr.2018.0909.2758 ARTICLE INFO ABSTRACT Human Resource Accounting involves accounting for expenditure related to human asset in an organization as opposed to traditional accounting which merely expenses costs and reduces profit which to our mind sub optimise financial reporting. (Akintoye, 2012) A primary purpose of the accounting information, available in the published annual reports of the companies, is to acquaint the shareholders and other concerned with the working of the companies during the past one year. The published reports of the companies contain wealth of information which is made use of by many people and organizations. This information relates to the turnover, reserves and liabilities, investments and fixed assets, amount of profits distributed/transferred to General reserves, profit/loss ect. Besides, the director’s reports also enlighten the members and others about the future growth and potential of the organization. Diversification/expansion plans are also made known to the public through these public through these published annual reports.(Malik, 1993) Based on the above backdrop the current study has been made to examine the impact of disclosing Human Resource Accounting (HRA) information on Stock Investment decision. The study examines the use of HRA information from the point of view of the external users and is confined to the use of published information only for stock investment decisions. INTRODUCTION Human resources are the energies, skills, talents and knowledge of people which are, or which potentially can be, applied to the production of goods or the rendering of useful services. Human beings are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development. Investments in human resources have directly contributed to the growth of an organisation – by promoting the knowledge and application of science and technology to production processes and developing innovations and research.(Malik, 1993) Human resource accounting provides monetary data regarding the human resources of the organization which is considered to be important not only for the management in taking various decisions but also for the analyst and the employees. For the analyst it not only provides information regarding the inner strength of the organization but also helps in making decisions regarding the long term investment in that organization and this also affects the bargaining power and performance of the employees.(Dhanabhakyam & S, 2016) HRA will disclose the information regarding the strength and weakness of the organization and helps in deciding the long term investment in that organization. Financial statements are prepared according to the company law in India which does not give scope for showing any significant information about human resources in financial statement except the salaries paid to the employees. But nothing will stop the companies to disclose about the value of the human resources and the outcome of their performances during the accounting period in notes or schedules. (H R & Sinha, 2018) Literature Review Hendricks (1976) in his research paper titled “The Impact of Human Resource Accounting Information on Stock Investment Decision: An Empirical Study” has examined the relationship between Human Resource Accounting Information and Stock Available Online at http://www.recentscientific.com International Journal of Recent Scientific Research International Journal of Recent Scientific Research Vol. 9, Issue, 9(D), pp. 28910-28912, September, 2018 Copyright © Shreelatha H R et al, 2018, this is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. DOI: 10.24327/IJRSR CODEN: IJRSFP (USA) Article History: Received 13 th June, 2018 Received in revised form 11 th July, 2018 Accepted 8 th August, 2018 Published online 28 th September, 2018 Key Words: Human Resource Accounting Information, Return on Capital Employed, net sales, sales per employee, cost per employee, investment decision etc.,