Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia

Research Article

Determined Factors of Human Capital Valuation: An Empirical Study in Higher Education Institution

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  • @INPROCEEDINGS{10.4108/eai.13-8-2019.2294267,
        author={Tubandrijah  Herawati and Putu Prima Wulandari and Didied  Affandy},
        title={Determined Factors of Human Capital Valuation: An Empirical Study in Higher Education Institution},
        proceedings={Proceedings of The First International Conference on Financial Forensics and Fraud, ICFF, 13-14 August 2019, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICFF},
        year={2020},
        month={5},
        keywords={human capital valuation analytical hierarchical process higher education institution},
        doi={10.4108/eai.13-8-2019.2294267}
    }
    
  • Tubandrijah Herawati
    Putu Prima Wulandari
    Didied Affandy
    Year: 2020
    Determined Factors of Human Capital Valuation: An Empirical Study in Higher Education Institution
    ICFF
    EAI
    DOI: 10.4108/eai.13-8-2019.2294267
Tubandrijah Herawati1,*, Putu Prima Wulandari1, Didied Affandy1
  • 1: Brawijaya University
*Contact email: herawati@ub.ac.id

Abstract

During disrupted economy era with rapid technological development, the role of human capital is often overlooked, especially when information and communication technologies (ITCs) have replaced some of the human functions. Even some experts argued that human capital is an asset of the organization, the contradict of human accounting treatments remains an interested issue especially when human valuation becomes one of the key drivers of the growth of organization such as in higher education institution (HEI). Using analytical hierarchy process (AHP), this study examines whether the human resource development expenses may be accounted as the key driver in a HEI development and determines which human-development activities that continually may contribute to the HEI value. The result shows that the cost of professional or competence development is as the most important activities in the human capital valuation process. This study, therefore, is supporting the previous studies in which such attributes as life experience, knowledge, innovation, motivation are the critical human capital dimension to contribute to the value of institutions.