There are many factors in play when it comes to a company's ability to succeed and reward shareholders.
One of the most difficult factors to measure has been human capital.
Current accounting methods treat human capital as a current or future expense.
Real estate and production equipment add to the balance sheet. However, a highly-skilled (and well-paid) workforce just detracts from profit and value.
In short, measuring the value of human capital in a business has been downright impossible. How do you quantify who has the best employees or how driven the employees are to drive corporate success?
How do you know when employees feel engaged, feel empowered to innovate, and feel like both the management and the mission align with their values?
Famed author and behavioral economist Dan Ariely is a founding member of Irrational Capital. This investment research firm that has unlocked the connection between companies with a high level of human capital and success in the marketplace.
Irrational Capital's Human Capital Factor (HCF) Index has the potential to change how businesses are valued forever. Continue reading "ETF Explores New Signals Behind Corporate Profitability"