Human Resource Accounting and Financial Performance of Select Small-Scale Industries of Odisha: An Empirical Analysis

This study has been aimed at verifying the influence of human resource accounting practices and its impact on the financial performance of 30 select small-scale industries located in Odisha. Financial data for the purpose have been collected from the secondary sources for five years starting from 2016 to 2020 on the 30 small-scale industries, out of which 15 each from the service and manufacturing sector. By using the panel fixed and random effect regression models, the findings of the study confirm that human resource accounting is a very important element of management in the small-scale industries as it has a direct impact on the financial performance measured in terms of ROA and ROCE. Though, the type of business has a strong bearing on the profitability, dependency of any organisation on its human capital cannot be ignored. Therefore, it is recommended that smallscale industries can improve their human capital with proper implementation of human resource accounting where every aspect of cost and benefits associated with human resource should be identified, recorded and reviewed to ensure better performance.