Hypothesis Research design and valuation model
The market reaction on the human resources information disclosure in Chinese listed companies
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experience and learning ability can be seen from the average age QIAN, 2002. If the employee age and the value of enterprises have positive correlation, represent that the staff experience, expertise and the capacity have
potential influence to the value of enterprises. If the average age of employees and the value of enterprises showed a significant negative correlation, it may represent that employees learning ability and creativity are more
potential. Hypothesis 2: PR +
Professional ratio equals to the proportion of professionals. Prior research showed that professional knowledge and professional competence can be seen from the professional ratio. If the professional ratio and
market value of enterprises have a positive correlation, it represent that the professional knowledge and analytical skills may create a high value in the enterprise.
Hypothesis 3: AE + Average pay of employee suggested that there is a human capital value driver - staff salary HAO, 2003.
Employees are important intangible assets in company, the company would encourage the employees to create more value through various incentives, average annual salary of corporate employees is a direct return forms to
the employees. When companies provide a higher salary to their employees, the company indicated that they pay much attention on their staffs, and also showed that companies are more solid strength and performance better,
meanwhile, the company’s market value is correspondingly high. Hypothesis 4: RSC +
Ratio of salary costs reflects the increase of salary concomitant with the addition of net operating income. Researches showed that the efficiency of the staff can be seen from the ratio of salary costs. The staff ratios of
salary costs If the rate of salary costs showed a significant negative correlation with PB, it shows that the industry has a higher labor costs, but fails to enhance the value of enterprises; if the two variables have a positive
correlation, and has had a notable impact, companies may raise the staffs’ pay as incentives to motivate staff, and it will also increase the business value.
Hypothesis 5: APMR + Average profit margin ratio Labor margin is another important indicator to measure the efficiency of staff in
company. Average profit margins ratios measure the results of their labor, that is, to create value for the company. This indicator reflects the efficiency of the staff, and also reflected whether the incentive system which is given by
company is reasonable. If the employee’s average profit margins and showed a significantly positive correlation with the PB, it means that the company have a good incentive mechanisms for staff, and the staff can maximize
their ability for the company to create the greatest value. Hypothesis 6: AA +
Average assets measures the fixed assets owned by each staff, if it shows a positive correlation with the PB, it impact that the business value will increase by increase the fixed assets. An increase in fixed assets would
increase the work efficiency, and accelerate the accumulation of corporate value. If the two factors are negatively correlated, show that the increase of fixed assets may reduce the value of enterprises; the company has idle assets
and failed to increase staff productivity. Hypothesis 7: AMF +
Average management fee reflect the management fees which are spent on each employee. If it shows a positive correlation with PB, respect that the value of company will increase by increasing each employee’s
management fees. Therefore, the author supposes that the average management fee will affect the corporate value.
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Hypothesis 8: DTDP + The disclosure of talent development program information will show the importance of human resources in
company. If the enterprise has a good talent development plan, they will initiative to public this information, because
the investors would be more familiar with the technical talent enterprises, and know the future development of enterprise capabilities well. Therefore, the corresponding value of enterprises will be increased.
Hypothesis 9: PPD + In a public annual report of listed company, some companies devoted to disclose the management staff and
pay policy Gunnar, 2003. Companies pay policy reflects the perfection of the internal organizations status. If companies have good pay policies, the company’s internal control mechanism is relatively mature, and
organization and management capacity are also good. Similarly, when companies have a good remuneration policy, they will disclose the detail of information initiatively in order to attract more talents to join the company’s team.
Hypothesis 10: ES + Disclosure of executives’ shareholdings shows the intension of a company in management Gunnar, 2004.
At present the capital market listed companies want to improve the management of the business organization system and intensify the management of enthusiasm, so the executives have realized holding shares. There are two
reasons why the annual report didn’t disclose the executives’ shareholding policy, one is the company didn’t have this policy yet; Another is the company unwilling to disclosure Kaouthar, 2005. Theoretically, the more
information company provided, the less asymmetric happened in market. So this disclosure of policy is helpful for companies to increase their value.