A common cliché found in annual reports is "our employees are our most important, valuable asset." While many companies claim human capital is an important asset and source of valuable earnings, there is nary a human asset found in financial statements. This research paper investigates the usefulness and importance of voluntary human capital disclosures. The 2 X 2 X 2 experiment manipulates firm financial performance, non-GAAP voluntary disclosures, and disclosure attestation to identify the extent to which human capital disclosures influence investor decision-making related to assessments of management credibility and firm value. The research described in this dissertation also investigates the interactive effects of auditor attestation on voluntary disclosure. The primary hypothesis examines whether firms providing strong human capital disclosures will have higher credibility ratings and stock price associations than firms not providing such disclosures. I find that when presented with human capital metrics, investors' assessments of credibility and firm stock price are attenuated by human capital disclosures, especially during periods of strong financial performance. Results also suggest investors key in on both non-financial and financial human capital metrics. Based on cognitive processing time, analyses indicate investors spend more time processing strong human capital disclosures. Another important hypothesis examines if firms receiving attestation services over voluntary human capital disclosures will have higher credibility ratings than firms not receiving such services. I find some evidence investors cognitively acknowledge the presence of auditor attestation reports when they are presented, and both credibility and stock price assessments are impacted by attestation services. Overall, the original research described here makes a contribution to the existing literature by providing unique insight as to how human capital information is viewed by investors. Current reporting standards focus on financial assets, physical assets, and technological/intellectual property. This can result in significant transparency issues when publicly traded firms fail to adequately disclose human capital risks. Organizations undoubtedly have substantial unreported human capital benefits and risks, which can have a potentially significant market valuation impact. The research conducted and reported in this paper illuminates the potential benefits of human capital disclosures to both internal and external firm stakeholders. / Ph. D.

The purpose of this study is to investigate how the effects of principles vs. rules based accounting standards and a potential change in the audit reporting model will affect investors' perceptions of management's reporting credibility.  The Securities and Exchange Commission is currently considering the adoption of International Financial Reporting Standards, which is considered to be a set of principles based accounting standards.  Whereas, U.S. Generally Accepted Accounting Principles are considered rules based.  Additionally, the Public Company Accounting Oversight Board is considering a possible change to the existing audit reporting model.  The audit reporting change currently under consideration would require the use of additional emphasis of matter paragraphs within the audit report to discuss areas of higher risk in the financial statements.  A sample of 196 nonprofessional investors completed an on-line 2 X 2 between subjects experiment that manipulated accounting standard type and level of auditor reporting.  Participants assessed direct and indirect measures of reporting credibility, obtained the experimental manipulations, and provided revised credibility assessments.  Changes in credibility served as the dependent variable.  The results suggest that expanded auditor reporting resulted in lower perceptions of management\'s reporting credibility. Additionally, the effects of expanded auditor reporting appear stronger under rules based accounting standards.  No main effects, however, of accounting standard type were observed.  These results contribute to the existing literature on accounting standard type, the information content of audit reports, and reporting credibility. / Ph. D.