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Regular version of the site

Article

Role of human assets in measuring firm performance and its implication for firm valuation

Journal of Economic Structures. 2020. Vol. 9:47. P. 1-27.

The purpose of the study is to evaluate the role of human asset in frm performance and its implication for frm valuation. To do so a modifed fve-factor model with human asset designed for capturing the size, value, proftability and investment in average portfolio returns that performs better than both Fama–French (1993) threeand Fama–French (2015) fve-factor model. Study redefnes CMA factors as CvMAv that includes human assets in it. The main problem with the modifed fve-factor model with human asset is the microcap with conservative investment stocks whose returns behave like that low-value unproftable frms.