Practices of Human Resource Accounting Disclosure: A Comparative Study across ASEAN Countries

Abstract

Disclosure of human resource accounting is an important facet of sound corporate governance to ensure organizational sustainability. However, practices of human resource accounting disclosure (HRAD) have not been made mandatory among Asian countries and therefore to what extend the companies have reported their human resource accounting is not evident. This study aimed to describe HRAD practices among top ranked companies based on ASEAN Corporate Governance Scorecard which include Indonesia, Malaysia, Vietnam, Philippines, Thailand and Singapore. Assessment of HRAD practices was done based on sixteen criteria based on previous studies. A total of 195 companies were assessed based on their annual reports in year 2014 and 2015. The study found that Indonesia has the highest HRAD practices (71%), followed by Thailand (66%), Vietnam (65%), Malaysia (59%), Singapore (43%) and Philippines (40%). It is also found that separate HRAD is almost non-existent except a few companies in Philippines and Malaysia. This indicates that HRAD practices need to be institutionalized for better governance in Asean countries.

The Effect of Fundamental Factors, Sustainability Reporting, and Corporate Governance on Firm Value

“…Based on the signaling theory point of view, sustainability reports are part of the signal that firms give to the public. Disclosure of information on social and environmental activities is expected to provide a positive signal to investors as a form of legitimacy for firms that also care about their environment [28]. The research results of Budiana & Budiasih [29], Fatchan & Trisnawati [30], Kurniawan et al [31], Kuzey & Uyar [32], Latifah & Luhur [33], and Loh et al [34] stated a positive relationship between sustainability report disclosure and firm value.…”

Human resource accounting disclosure (HRAD) practices: Evidence from banking industry in Bangladesh

“…Many researchers have conducted research for human resource accounting disclosure practices (Hermannson, 1964;Flamholtz, 1985;Sackmann et al, 1989;Owusu-Ansah, 1998;Flamholtz, Bullen, & Hua, 2002;Akhtaruddin, 2005. Ahmed, 2009Ullah, 2013;Rahman et al, 2020;Mohammad Ali, et al, 2021, Wiyadi et al, 2021Ali & Barda, 2022;Islam et al, 2023). In the 1960s, HRA was introduced in the accounting literature as a way to quantify human value as a component of goodwill (Flamholtz, 1985).…”

“…However, service length has a considerable negative impact, while profitability has a little impact. Another study conducted by Wiyadi et al (2021), the Study's goal was to describe HRAD practices among top-ranked businesses in Indonesia, Malaysia, Vietnam, Philippines, Thailand, and Singapore, according to the ASEAN Corporate Governance Scorecard. Sixteen criteria from earlier studies were used to evaluate HRAD methods.…”