In the aftermath of the COVID-19 pandemic, the concept of human capital has gained renewed interest, both in academic literature and in corporate strat egy, particularly through Sustainability reporting and Human Resources (HR) practices. As the world of work undergoes rapid transformation driven by the consequences of the pandemic, heightened geopolitical tensions and the acceler ated expansion of artificial intelligence, organizations are faced with a new set of challenges.
Abstract
This study presents a new methodological framework that combines clustering techniques with large language models (LLMs) to analyze intangible assets in various fields of research. By applying this approach to human capital, we reveal that its definition and perception vary considerably from one region to another and evolve over time, reflecting differences in socioeconomic development, institutional frameworks, and geopolitical contexts. Our financial analysis confirms that these regional variations in the perception of human capital have important implications for investment performance. Specifically, strategies that incorporate human capital development scores generate significantly different returns in emerging markets compared to developed markets, highlighting the importance of tailored portfolio approaches. Furthermore, our asset valuation results highlight the central role of human capital development in explaining emerging market dynamics, particularly during periods of geopolitical turmoil, when companies with stronger human capital demonstrate greater resilience and stability.
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