Comparative Analysis of Human Resource Accounting Practices and the Effect of Financial Performance on Human Resource Value in Public Sector Companies in India

The human asset is an intensive nature of the companies which is critically important for effective management of human resources. Human resources constitute a major element of total operating costs and the ability of management to control these costs is vital in order to long-term business success. Therefore, it is essential to disclose the value of human resource in annual report of companies. But the problem of HR is that most of the companies in India do not recognize it properly, despite of its significant contribution. HR’s contribution is also significant in human capital efficiency and firms' financial performance. This research paper is based upon the HRA practices in Indian companies and analyzed empirically the relation between the value of human resource and financial performance. The data used in the study has been collected from the annual reports of nine selected public enterprises for the years 2006-07 to 2015-16. The present study also, intend  to examine the relationship between HRV with Net Profit, Total No Employee, Profit per Employee, Return on HRV, ROE by using multiple regression analysis. The  findings of this research paper uncover the fact that the HRV of companies is dependent upon two factors Net Profit and Return on HRV, in other hand has clearly shown that Net Profit is the most important factor to improve HRV followed by Return on HRV.