Effect of Company Characteristics on Human Resource Disclosure Index: Empirical Evidences from Indian Corporates

Abstract

Purpose: The purpose of the present research article is to know the extent of Human Resource (HR) disclosure practices and effects of various independent variables on HR disclosure practices in selected Indian listed companies. Design/methodology/approach: Initially, Human Resource Disclosure Index (HRDI) of 91 items is constructed for 63 companies listed on the NSE-100 index. After that, the effect of various independent variables is analyzed on HRDI. Finally, independent variables are regressed with HRDI to find the important independent variables which influences the HRDI. The relationship between industry type and HR disclosure has been studied using one-way ANOVA and the comparison between public and private sector has been studied using the Mann–Whitney U test. Findings: The findings of the study show that net fixed assets, net sales, market capitalization, earnings per share (EPS), the debt–equity ratio and total number of pages of an annual report have a significant effect on HRDI. The remaining variables show insignificant association with HRDI. HRDI has been reported differently by different industries, while public and private companies do not differ in case of HR disclosure practices. Originality/value: This study provides the valuable information and contributes in existing literature. The HR disclosure index created in this study may be utilized by the companies as a benchmark to enhance their HR disclosure in future.

Corporate Determinants and Human Resource Accounting Disclosure of Listed Banks in Nigeria

“…This implies that banks" profitability enhances the disclosure of human resource accounting ISSN 2162-3058 2020 information to various stakeholders. This result is consistent with the studies by Micah et al (2012), Akintoye (2012), Enofe et al (2013) and Aggarwal and Verma (2020) that showed a significant relationship between profitability and human resource accounting disclosure. Nevertheless, the results of the studies by Athanasios et al, (2013), Ullah and Karim (2015) and Sarkar et al, (2016) revealed no relationship.…”

“…Currently, no verifiable evidence exists on the relationship between profitability and human resource accounting disclosure in Nigeria. Though, a significant positive relationship between profitability and human resource accounting disclosure has been consistently found by prior studies such as Syed (2009), Ahangar (2011), Rehman, Rehuman and Zaliad (2011), Micah et al, (2012), Akintoye (2012), Enofe et al, (2013) and Aggarwal and Verma (2020). However, Athanasios et al, (2013), Ullah and Karim (2015) and Sarkar et al, (2016) found an insignificant association between profitability and human resource accounting disclosure using regression analysis.…”

“…This method was adopted because it was not biased to a specific user (Barako, 2007). However, prior studies using weighted disclosure index have been found to be biased between different levels of disclosure and regards information items to be more important than the other (Barako, 2007), while the unweighted disclosure index was found to ensure that all disclosure items are equally essential (Sarkar et al, 2016;Aggarwal & Verma, 2020). Thus, the disclosure index for each bank is then expressed as a percentage.…”

Human Resource Disclosures in Corporate Annual Reports of Insurance Companies: A Case of Developing Country

“…The more disclosed information about the elements of companies' value creation the more investment tends to firms. And so, the companies are able to receive lower-priced funds [30,61,68] and trustworthy disclosure enhance value since it supports investor decision making [69]. In addition, that the larger companies are in the spotlight of the government agencies and society.…”

“…For that reason, better disclosure practices could be a way for companies to diminish the pressure [28]. There are number of empirical researches that examine the effect of size on human resources disclosure [3,28,30,63,65,68]. Hence the fourth hypothesis is proposed as: Hypothesis 4 (H4).…”