Human capital and the balance sheet

Kenneth M. Washer, Srinivas Nippani

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Practitioners and personal finance textbooks generally exclude human capital when constructing balance sheets although this asset represents an individual's earning power and is liquidated over time to meet financial needs. Representing human capital on the balance sheet recognizes its importance as a factor in financial decisions. For many investors, including the value of human capital justifies an increase in the level of risk in the portfolio. The returns from human capital are often hedged with life and disability insurance which can also be incorporated into the financial statement. The intent of this presentation is to initiate a discussion on the place of a contingent asset such as human capital in a household's balance sheet.

Original languageEnglish
Pages (from-to)13-20
Number of pages8
JournalJournal of Financial Counseling and Planning
Volume15
Issue number1
StatePublished - 2004
Externally publishedYes

Fingerprint

Balance sheet
Human capital
Assets
Financial statements
Personal finance
Life insurance
Disability insurance
Investors
Textbooks
Household
Financial decisions
Factors

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Finance

Cite this

Human capital and the balance sheet. / Washer, Kenneth M.; Nippani, Srinivas.

In: Journal of Financial Counseling and Planning, Vol. 15, No. 1, 2004, p. 13-20.

Research output: Contribution to journalArticle

Washer, Kenneth M. ; Nippani, Srinivas. / Human capital and the balance sheet. In: Journal of Financial Counseling and Planning. 2004 ; Vol. 15, No. 1. pp. 13-20.
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