Role of human assets in measuring firm performance and its implication for firm valuation

The purpose of the study is to evaluate the role of human asset in firm performance and its implication for firm valuation. To do so a modified five-factor model with human asset designed for capturing the size, value, profitability and investment in average portfolio returns that performs better than both Fama–French (1993) three- and Fama–French (2015) five-factor model. Study redefines CMA factors as CvMAv that includes human assets in it. The main problem with the modified five-factor model with human asset is the microcap with conservative investment stocks whose returns behave like that low-value unprofitable firms. © 2020, The Author(s).

Authors
Maiti M.1 , Vuković D. 1, 2
Journal
Journal of Economic Structures
Publisher
Springer
Number of issue
1
Language
English
Status
Published
Link
External link
DOI
10.1186/s40008-020-00223-3
Number
47
Volume
9
Year
2020
Organizations
  • 1 Department for Finance, St. Petersburg School of Economics and Management, National Research University Higher School of Economics, Kantemirovskaya St. 3A, Saint Petersburg, 194100, Russian Federation
  • 2 Finance and Credit Department, Faculty of Economics, People’s Friendship University of Russia (RUDN University), Miklukho-Maklaya str.6, Moscow, 117198, Russian Federation
Keywords
Asset Pricing; Factor models; Human asset; Risk
Date of creation
02.11.2020
Date of change
02.11.2020
Short link
https://repository.rudn.ru/en/records/article/record/64296/
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