An Explanation of Human Capital Disclosure from the Resource Based Perspective

Abhayawansa, Subhash; Abeysekera, Indra

doi:10.2139/ssrn.2322283

Cited by 8 publications

(9 citation statements)

References 50 publications

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“…In CSR report the ICVD, compared with ICVD in annual report, gives a broader and more transparency view of the company value creation process because the disclosure is more balanced between human and relational capital (Abeysekera, 2006). Differently from previous annual report research (Abhayawansa and Abeysekera, 2008) human capital is the most reported category and it is viewed as an asset that the companies try to manage and engage through disclosure and a clear and consistent communication process to built mutual trust and good relationship. Regard the high frequency of human capital Perrini (2006) asserts that human capital relationship is an essential topic of CSR reporting because employees are one of the primary company stakeholders.…”

Section: Discussionmentioning

confidence: 99%

Intellectual Capital Communication: Evidence from Social and Sustainability Reporting

et al. 2009

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Purpose -The purpose of this study is to investigate the level and quality of intellectual capital information communicated through social and sustainability report for a sample of 37 Italian listed company over two years (2005 and 2006).Design/methodology/approach -The study use the resource based theory to explain the relationship between corporate social responsibility and intellectual capital. Content analysis is applied through a multidimensional framework composed by three main disclosure profiles (time orientation, nature and type of information) which permits to analyse in depth the quality of intellectual capital information.Findings -The results highlight significant and increasing presence of intellectual capital information in CSR reports which is communicated principally in non financial, quantitative and non time specific terms. Human capital is the most reported category followed by relational and organisational capital. The results indicate there are many similarities between the two typology of report contributing to the ongoing debate on corporate reporting practices.Practical implications -The results suggest that the integration between IC report and CSR report is a plausible issue and that could be useful to enhance the transparency and the understanding of company processes and activities both for internal and external stakeholders.Originality/value -Very few studies have analysed the intellectual capital in CSR report in atheoretical and mono-dimensional way. Moreover the resource base theory has been scarcely applied to explain the disclosure of intellectual capital even if there are several similarities between the two perspectives.Keywords: intellectual capital, disclosure, social and sustainability reporting, resource based view, corporate social responsibility Article Type: research paperThe authors are grateful to James Guthrie for the discussion about the idea of this paper, to the participants at the "4 th Workshop on visualising, measuring, and managing intangibles and intellectual capital" (Hasselt, 2008) and at the "XIII Workshop of AIDEA study group on communication to financial markets" (Bari, 2009 2 IntroductionIn the last decade, in the field of intellectual capital (IC) research, most attention was placed on companies' intellectual capital voluntary disclosure (ICVD) analysis to assess companies attitude in reporting such information. In general voluntary disclosure is an important aspect of the overall company communication process because it permits to enhance the level of company transparency, to differentiate the company from their competitors and to generate positive financial and social effects. Voluntary disclosure can be defined as the information that is not required by laws or regulations or the information that goes beyond the minimum required in a mandatory area (Williams, 2008). This information can be made through public and/or private communication channels which have different recipients and different communication objectives. Public channels, s...

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Section: Discussionmentioning

confidence: 99%

Intellectual Capital Communication: Evidence from Social and Sustainability Reporting

et al. 2009

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“…Furthermore, Mccann (2016) found that HC experts cannot predict the effect of disclosure in providing value to the investors unless it is disclosed in detail. Due to these reasons, HC is the least reported in corporate annual reports in Italy (Bozzolan, Favotto & Ricceri, 2003) and Malaysia (Abhayawansa & Abeysekera, 2008;Goh & Lim, 2004).…”

Section: Problem Statementmentioning

confidence: 99%

The Emergence Of Human Capital Disclosure: Exploring The Influence Of Board Composition

Ahmad¹

2018

The European Proceedings of Social and Behavioural Sciences

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Human Capital Disclosure (HCD) has remained unregulated in Malaysia until now. As a result, some Malaysian companies are reluctant to disclose the information related to their employees. This study examines the quality level of HCD and the influence of board composition on the HCD of 17 PN17 companies listed in Bursa Malaysia's main market as at 5 th January 2017. The study employed content analysis to analyse the annual reports of Malaysian listed companies' from 2010 until 2015. It was found that the HCD for the PN17 companies in Malaysia is still low for every component. Out of the five components, employee welfare showed the highest disclosure, while employee measurement showed the lowest disclosure compared to equity issue, training and education, and employee safety. Besides that, there is a negative significant relationship between foreign directors and HCD, whilst, board size, audit committee independence, remuneration committee independence and women director have an insignificant relationship with HCD. These findings are important for practitioners and policy-makers to enhance the transparency and improve the accountability of human capital in the company. Besides that, the study is able to assist the stakeholders in putting more attention on foreign directors in determining HCD of companies.

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“…As Ehrlich and Murphy (2007, p. 1) remark: "Human capital theory is one of the most universally accepted concepts in economics and other social sciences". However, devising even approximate metrics is complex due to its very nature, and it is not surprising that it is generally the least disclosed among the intellectual capital categories as defined by the OECD (Abhayawansa and Abeysekera, 2008). For example, in Finland, human capital-based external reporting has been attributed to only about 20 percent of private companies (Ahonen, 2009;Ahonen and Grö, 2005).…”

Section: Human Capital and Goodwillmentioning

confidence: 99%

Conflicting conceptualizations of human resource accounting

Steen

Welch²,

McCormack

2011

Journal of Human Resource Costing &Amp; Accounting

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to examine the differing perceptions or conceptualizations that have contributed to prevailing views held by accountants on the measurement and reporting of human resources. Design/methodology/approach -The study provides an analysis of extant literature and presents a theoretical framework on the relationship between HR, intellectual capital and goodwill. Findings -The lack of traction in the progress of accounting for people is due to several factors including tension between employees and management, the demands of internal and external stakeholders, and the historic roots of accounting for labour.Research limitations/implications -The paper provides suggestions as to how the debate regarding the valuing and reporting of human resources may be rekindled. Originality/value -This study highlights the historical context for the lack of traction in the area of accounting for people, and the relatively recent development of the Intellectual Capital Statement as a partial but positive development in the area.

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An Explanation of Human Capital Disclosure from the Resource Based Perspective

Cited by 8 publications

References 50 publications

Intellectual Capital Communication: Evidence from Social and Sustainability Reporting

Intellectual Capital Communication: Evidence from Social and Sustainability Reporting

The Emergence Of Human Capital Disclosure: Exploring The Influence Of Board Composition

Conflicting conceptualizations of human resource accounting

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