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Boards are exploring ways to report the value of intangible assets to investors. This paper explores human capital reporting and notes human capital is not reported within or between industry sectors in a standardised way. As a further development in a suite of models, we propose a framework, the Star Model, as a step in the standardisation of interpreting and reporting on human capital to investors. In developing this model, the authors question whether human capital reports should be industry specific, given that the human capital drivers of value vary across industry groups. For the knowledge-intensive biotechnology industry in particular, there may be a case for parallel forms of news flow from Boards to markets: technical news, financial news and human capital news. We conclude that more empirical research into human capital analysis and reporting in other industry sectors will be needed. [ABSTRACT FROM AUTHOR]

Manuscript Type: Empirical Research Question/Issue: This study investigates the association between the composition of the board of directors and corporate diversification, to explore the role of the board in corporate strategic choice. Research Findings/Results: Based on a sample of 101 Australian publicly listed firms in 2005, this study finds that there is no link between corporate decisions on product and/or geographic diversification and two aspects of board composition – board independence and institutional representation. However, there is a positive link between total diversification and a third aspect of board composition – the proportion of directors who have ties to boards of corporations in other industries. Theoretical Implications: The results provide support for the managerial hegemony and the resource dependency theories. Corporate strategic decisions regarding diversification are more likely to be made by management than boards of directors, and to be encouraged by interlocking directors with extra-industry ties. Practical Implications: Contrary to the requirement or recommendation in many jurisdictions that boards be more independent, these results indicate that shareholders' interests, represented by lower levels of diversification, are not promoted under such circumstances. Interlocking directors appear to effectively link the corporation to the external business environment and to encourage diversification. Existing recommendations and regulations to align management with shareholders' interests through independent boards should be revised. Board composition should also consider directors' knowledge, relevant expertise, availability, and length of tenure. [ABSTRACT FROM AUTHOR]