Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Human Resource Disclosure Practices in Indian Corporate Sector


Affiliations
1 Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India
     

   Subscribe/Renew Journal


In the present business scenario, Human Resource (HR) is considered the most valuable and strategic asset of the organisation. The knowledge and skills possessed by the employees is the real capital for the organisations, especially in a knowledge-based economy. Hence, disclosure of such an important asset is crucial for the success of the organisations. Considering the importance of disclosure of HR, the objective of the present research paper is to know the extent of HR disclosure practices of selected Indian listed companies and also to investigate the significant variations in HR disclosure practices across the various industries in the Indian corporate sector. In terms of research methodology, descriptive statistics is used for knowing the extent of HR disclosure and the Kruskal-Wallis test is used to investigate the significant variations in HR disclosure practices across various industries in the Indian corporate sector. The findings of the paper showed that the miscellaneous sector discloses the most HR information in their annual reports. Further, results reveal that there are significant variations in HR disclosure practices across various industries in the Indian corporate sector. There are some managerial implications of the study, like knowing which industry discloses the most HR information. On the basis of this information, investors analyse only that industry for their investment purposes. By disclosing more information, managers increase the transparency of the company’s activities and build a positive image in the mind of all the stakeholders. Employees or high calibre employees are attracted towards those industries that do more for their employees; this information is known only through greater HR disclosure by the companies.

Keywords

Human Resource Disclosure, Annual Report, Content Analysis, Industries, Human Resource Disclosure Index, Indian Corporate Sector
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abebe, M. G. (2020). Corporate social responsibility and financial performance: Evidence from the Ethiopian leather industry. Journal of Commerce and Accounting Research, 9(1), 50-66.

  • Aggarwal, K. (2021). Relationship between company characteristics and HR disclosure level: Evidences from Indian public sector companies. Management and Labour Studies. doi:https://doi.org/10.1177/0258042X211011324

  • Alam, I., & Deb, S.K. (2010). Human resource accounting disclosure (HRAD) in Bangladesh: Multifactor regression analysis – A decisive tool of quality assessment. The Cost and Management, 38(3), 9-13.

  • Albassam, W. (2014). Corporate governance, voluntary disclosure and financial performance: An empirical analysis of Saudi listed firms using a mixed-methods research design (Unpublished doctoral dissertation). University of Glasgow, UK.

  • Alhazaimeh, A., Palaniappan, R., & Almsafir, M. (2014). The impact of corporate governance and ownership structure on voluntary disclosure in annual reports among listed Jordanian companies. Procedia – Social and Behavioral Sciences, 129, 341-348.

  • Al-Janadi, Y., Rahman, R. A., & Omar, N. H. (2013). Corporate governance mechanisms and voluntary disclosure in Saudi Arabia. Research Journal of Finance and Accounting, 4(4), 25-35.

  • Aljifri, K., & Hussainey, K. (2007). The determinants of forward-looking information in annual reports of UAE companies. Managerial Auditing Journal, 22(9), 881-894.

  • Aljifri, K., Alzarouni, A., Ng, C., & Tahir, M. I. (2014). The association between firm characteristics and corporate financial disclosures: Evidence from UAE companies. International Journal of Business and Finance Research, 8(2), 101-123.

  • Alturki, K. H. (2014). Voluntary disclosure by Saudi companies. Research Journal of Finance and Accounting, 5(20), 77-95.

  • Bozzolan, S., Favotto, F., & Ricceri, F. (2003). Italian annual intellectual capital disclosure: An empirical analysis. Journal of Intellectual Capital, 4(4), 543-558.

  • Charumathi, B., & Ramesh, L. (2019). Human and intellectual disclosure practices of Indian companies a longitudinal study. Journal of Commerce and Accounting Research, 8(3), 9-17.

  • Chau, G. K., & Gray, S. J. (2002). Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore. The International Journal of Accounting, 37(2), 247-265.

  • Choi, F. D. S. (1973). Financial disclosure and entry to the European capital market. Journal of Accounting Research, 11(2), 159-175.

  • Christopher, T., Hutomo, Y. B. S., & Monroe, G. (1997). Voluntary environmental disclosure by Australian listed mineral mining companies: An application of stakeholder theory. The International Journal of Accounting and Business Society, 5(1), 42-65.

  • Cooke, T. E. (1989). Voluntary corporate disclosure by Swedish companies. Journal of Financial Management and Accounting, 1(2), 171-195.

  • Cooke, T. E. (1992). The impact of size, stock market listing and industry type on disclosure in the annual reports of Japanese listed corporations. Accounting and Business Research, 22(87), 229-237.

  • Cormier, D., & Gordon, I. (2001). An examination of social and environmental reporting strategies. Accounting, Auditing and Accountability Journal, 14(5), 587-616.

  • Das, J., & Bhattacharjee, A. (2020). Environmental reporting - An evaluation of the sustainability performance of BHEL. Journal of Commerce and Accounting Research, 9(1), 6-12.

  • Divya, & Garg, M. C. (2007). Internet banking practices in India - Emerging issues. Business Vision, 3(1), 85-101.

  • Dyball, M. (1998). Corporate annual reports as promotional tools: The case of Australian National Industries Limited. Asian Review of Accounting, 6(2), 25-53.

  • Dye, R. A., & Sridhar, S. S. (1995). Industry-wide disclosure dynamics. Journal of Accounting Research, 33(1), 157-174.

  • Echave, J. O., & Bhati, S. S. (2010). Determinants of social and environmental disclosures by Spanish companies. GSMI Third Annual International Business Conference (Global Strategic Management, Michigan, USA), 55-68.

  • Esa, E., & Ghazali, N. A. M. (2012). Corporate social responsibility and corporate governance in Malaysian government-linked companies. Corporate Governance: The International Journal of Business in Society, 12(3), 292-305.

  • Financial Accounting Standards Board. (2001). Improving business reporting: Insights into enhancing voluntary disclosure. The Financial Accounting Standards Board.

  • Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance?. Journal of Accounting Research, 37(2), 319-352.

  • Gakhar, D. V., & Garg, M. C. (2008). Web-based corporate reporting practices: A survey. The ICFAI University Journal of Accounting Research, 7(3), 43-58.

  • Gamerschlag, R., Moller, K., & Verbeeten, F. (2011). Determinants of voluntary CSR disclosure: Empirical evidence from Germany. Review of Managerial Science, 5(Nos. 2-3), 233-262.

  • Garg, M. C. (1992). Recent trends in accounting with particular reference to reporting standards in the corporate sector in India (Unpublished doctoral thesis). Maharshi Dayanand University, Rohtak.

  • Garg, M. C., & Divya. (2009). Accounting standard disclosure compliance in online reporting by Indian companies. Asia-Pacific Business Review, 5(2), 141-153.

  • Garg, M. C., & Kumar, S. (2018). The relationship between corporate environmental reporting practices and company characteristics: Evidence from India. The IUP Journal of Accounting Research and Audit Practices, 17(3), 24-38.

  • Garg, M. C., & Kumar, S. (2019). Social reporting practices in Indian corporate sector. The Management Accountant, 54(8), 77-85.

  • Garg, M. C., & Kumar, S. (2019). The relationship between human resource disclosure and company characteristics: A study on Indian companies. IUP Journal of Applied Finance, 25(4), 28-47.

  • Garg, M. C., & Singh, D. (2017). Corporate governance and firm performance in Indian companies. International Journal of Indian Culture and Business Management, 15(4), 420-444.

  • Garg, M. C., & Verma, D. (2010). Web-based corporate reporting practices in India. The IUP Journal of Accounting Research and Audit Practices, 9(3), 7-19.

  • Garg, M. C., & Verma, H. L. (1994). Corporate sector – Disclosure of accounting policies. The Chartered Accountant, 765-768.

  • Hab, L. H., Vergauwe, S., & Zhang, Q. (2014). Corporate governance and the information environment: Evidence from Chinese stock markets. International Review of Financial Analysis, 36, 106-119.

  • Hussainey, K., Elsayed, M., & Razik, M. (2011). Factors affecting corporate social responsibility disclosure in Egypt. Corporate Ownership and Control, 8(4), 432-443.

  • Hussainey, K. S. M. (2004). A study of the ability of (partially) automated disclosure scores to explain the information content of annual report narratives for future earnings (Doctoral dissertation). University of Manchester.

  • Inchausti, B. J. (1997). The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. European Accounting Review, 6(1), 45-68.

  • Ismail, T. H. (2002). An empirical investigation of factors influencing voluntary disclosure of financial information on the internet in the GCC countries. Retrieved from http://ssrn.com/abstract=420700f%g5Cnfiles/3019/SSRN-id420700.pdf

  • Kamath, B. (2008). Intellectual capital disclosure in India: Content analysis of TecK firms. Journal of Human Resource Costing and Accounting, 12(3), 213-224.

  • Kansal, M., Joshi, M., & Batra, G. S. (2014). Determinants of corporate social responsibility disclosures: Evidence from India. Advances in Accounting, 30(1), 217-229.

  • Kaur, M., & Kaur, M. (2021). Relationship between bank-specific attributes and web-based disclosures - The case of India. Journal of Commerce and Accounting Research, 10(2), 53-63.

  • Khan, H. U. Z. (2010). The effect of corporate governance elements on corporate social responsibility (CSR) reporting: Empirical evidence from private commercial banks of Bangladesh. International Journal of Law and Management, 52(2), 82-109.

  • Klai, N., & Omri, A. (2011). Corporate governance and financial reporting quality: The case of Tunisian firms. International Business Research, 4(1), 158-166.

  • Kothari, S. P., Li, X., & Short, J. E. (2009). The effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis. The Accounting Review, 84(5), 1639-1670.

  • Kumar, S. P., & Garg, M. C. (2019). Relationship between corporate social reporting (CSR) practices and company characteristics in Indian companies. Finance India, 33(4), 1001-1014.

  • Lev, B., & Zarowin, P. (1999). The boundaries of financial reporting and how to extend them? Journal of Accounting Research, 28(1), 353-385.

  • O’Donovan, G. (2002). Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory. Accounting, Auditing and Accountability Journal, 15(3), 344-371.

  • Oliveira, L., Rodrigues, L. L., & Craig, R. (2006). Firm-specific determinants of intangible reporting: Evidence from the Portuguese stock market. Journal of Human Resource Costing and Accounting, 10(1), 11-33.

  • Owusu-Ansah, S. (1998). The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe. The International Journal of Accounting, 33(5), 605-631.

  • Oyelere, P., Laswad, F., & Fisher, R. (2003). Determinants of internet financial reporting by New Zealand Companies. Journal of International Financial Management and Accounting, 14(1), 26-63.

  • Raffournier, B. (1995). The determinants of voluntary financial disclosure by Swiss listed companies. The European Accounting Review, 4(2), 261-280.

  • Rana, S. (2021). Creating ‘PROP’ to achieve organizational success: A future research agenda. FIIB Business Review, 10(1), 1-4.

  • Roberts, R.W. (1992). Determinants of corporate social responsibility disclosure: An application of stakeholder theory. Accounting, Organizations and Society, 17(6), 595-612.

  • Suwaidan, M. S. (1997). Voluntary disclosure of accounting information: The case of Jordan (Doctoral dissertation). University of Aberdeen.

  • Syed, A. A. M. (2009). Human resource accounting (HRA) disclosure of Bangladeshi companies and its association with corporate characteristics. BRAC University Journal, 6(1), 35-43.

  • Wallace, R. O., Naser, K., & Mora, A. (1994). The relation-ship between the comprehensiveness of corporate annual reports and firm characteristics in Spain. Accounting and Business Research, 25(97), 41-53.

  • Watson, A., Shrives, P., & Marston, C. (2002). Voluntary disclosure of accounting ratios in the UK. British Accounting Review, 34(4), 289-313.

  • Watts, R., & Zimmerman, J. L. (1986). Positive accounting theory. United States of America: Prentice-Hall Inc.

  • Wyatt, A., & Frick, H. (2010). Accounting for investments in human capital: A review. Australian Accounting Review, 20(3), 199-220.


Abstract Views: 187

PDF Views: 0




  • Human Resource Disclosure Practices in Indian Corporate Sector

Abstract Views: 187  |  PDF Views: 0

Authors

Kirti Aggarwal
Guru Jambheshwar University of Science and Technology, Hisar, Haryana, India

Abstract


In the present business scenario, Human Resource (HR) is considered the most valuable and strategic asset of the organisation. The knowledge and skills possessed by the employees is the real capital for the organisations, especially in a knowledge-based economy. Hence, disclosure of such an important asset is crucial for the success of the organisations. Considering the importance of disclosure of HR, the objective of the present research paper is to know the extent of HR disclosure practices of selected Indian listed companies and also to investigate the significant variations in HR disclosure practices across the various industries in the Indian corporate sector. In terms of research methodology, descriptive statistics is used for knowing the extent of HR disclosure and the Kruskal-Wallis test is used to investigate the significant variations in HR disclosure practices across various industries in the Indian corporate sector. The findings of the paper showed that the miscellaneous sector discloses the most HR information in their annual reports. Further, results reveal that there are significant variations in HR disclosure practices across various industries in the Indian corporate sector. There are some managerial implications of the study, like knowing which industry discloses the most HR information. On the basis of this information, investors analyse only that industry for their investment purposes. By disclosing more information, managers increase the transparency of the company’s activities and build a positive image in the mind of all the stakeholders. Employees or high calibre employees are attracted towards those industries that do more for their employees; this information is known only through greater HR disclosure by the companies.

Keywords


Human Resource Disclosure, Annual Report, Content Analysis, Industries, Human Resource Disclosure Index, Indian Corporate Sector

References