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.
