Human resources accounting optimization: A conceptual pathway to improve financial performance

Juwita Sari; Prawita Yani; Fastha Aulia Pradhani

doi:10.14414/jbb.v13i2.4424

Vol. 13 No. 2 (2023), Articles

Vol. 13 No. 2 (2023)

Human resources accounting optimization: A conceptual pathway to improve financial performance

Articles

DOI: 10.14414/jbb.v13i2.4424

Published 2024-07-15

Juwita Sari⁺⁻
Prawita Yani⁺⁻
Fastha Aulia Pradhani⁺⁻

Juwita Sari

Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Jawa Timur, Indonesia

Prawita Yani

Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Jawa Timur, Indonesia

Fastha Aulia Pradhani

Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya, Surabaya, Jawa Timur, Indonesia

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Keywords

Firm size
HRA
Financial ratio

How to Cite

Sari, J., Yani, P., & Pradhani, F. A. (2024). Human resources accounting optimization: A conceptual pathway to improve financial performance. Journal of Business & Banking, 13(2), 341-359. https://doi.org/10.14414/jbb.v13i2.4424

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

This research discussed HRA’s impact on a company’s financial performance. Human Resource Accounting (HRA) is measured by using 16 indicators, while financial performance uses 4 indicators, which consist of return on assets (ROA), return on equity (ROE), firm size, and leverage ratio. The analytical method used is binary logistic regression. The result shows that none of the HRA indicators affect ROA, while the other three are still affected by HRA indicators. Employment report indicators and other employee benefits in HRA indexes significantly affect ROE. Human resource policy, human resource development fund, and superannuation fund affect firm size the most. The last leverage ratio is significantly affected by human resource policy. This research has implications for manufacturing companies to increase information transparency for investors in the capital market through the sustainability disclosure of periodical HRA reports. Meanwhile, it is recommended that the government take action to encourage HRA disclosure for public companies in Indonesia by making the standards and regulations needed.

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Human resources accounting optimization: A conceptual pathway to improve financial performance

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