Adoption of Human Capital Accounting Tools in Kenyan Firms

Abstract

Purpose- The study investigates the influence of awareness of existing Accounting (ACC) for Human Capital (HC) tools by key constituents in Kenyan organizations on Human Resource Accounting (HRA) discipline which promotes firm market value. Design/methodology/approach- The study employed an explanatory-mixed method cross-sectional survey on Chief Finance Officers (CFOs) in the Kenyan Medium and Large Organizations. Findings- The study found that creating awareness on the HC accounting tools among key constituents in Kenyan organizations is fundamental in actualizing the HRA discipline for improved decisions which augment Kenya's firms' market value. The CFOs supported the notion that the International Financial Reporting Standards (IFRSs) technical writers as key constituents in Kenyan organizations are well aware of the ACC for HC tools. This implies that the HRA discipline adoption in Kenya for superior firm market value is feasible as the IFRSs technical writes provide legal stipulations adopted in 93% (133/143) jurisdictions. Originality/value-Awareness of ACC for HC tools would corroborate the HRA discipline for superior decisions which enhance firm market value in Kenya.