A. SARKER1* and F. K. SIDDIQUE2
1=Arupa Sarker, Lecturer, Department of Accounting and Information Systems, Comilla University, Comilla and 2Fahimul Kader Siddique, Postgraduate Student, Department of Accounting and Information Systems Comilla University, Comilla, Bangladesh. Email: fksiddique@yahoo.com.
*Corresponding author’s E-mail: arupacou@gmail.com
ABSTRACT
The study was conducted at the Department of Accounting and Information Systems, Comilla University, Comilla, Bangladesh during 2017to investigate to identify the relationship between cost of human resource and firm valuation. Human resource accounting is one of the important fields of accounting. The study applies four denominators of firm valuation, viz. Earnings Per Share (EPS), Price Earnings Ratio (PER), Net Asset Value per Share (NAVPS) and Market Value per Share (MVPS). The study is based on a sample size of 16 private commercial banks of Bangladesh selected randomly from the 40 private commercial banks of Bangladesh and data that were used in the study collected from secondary sources. Karl Pearson correlation analysis and linear regression analysis was used to analyze data and to test the hypotheses. Empirical results indicate that EPS, NAVPS, MVPS had statistically significant positive relationship with cost of human resource. The relationship between cost of human resource and PER was not statistically significant.
Keywords: Human resource cost, Firm valuation, Earning per Share, Price earnings ratio, Net asset value per share and Market value per share.