Author Details

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

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Linkage between Board Structure and HR Disclosure: An Analysis in the Indian Context

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Authors

Kirti Aggarwal ¹

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

Source

Journal of Commerce and Accounting Research, Vol 11, No 3 (2022), Pagination: 1-9

Abstract

The study examines the linkage between board structure and Human Resource (HR) disclosure of listed companies in the National Stock Exchange (NSE-200 Index). A sample of 125 firms are studied from F.Y. 2012-13 to 2020-21. The data is collected from annual reports and Centre for Monitoring Indian Economy (CMIE) ProwessIQ Database. Two-Way Least Square Dummy Variable (LSDV) regression model is employed for testing the model. The outcomes revealed that board size, board meeting, company size, and total number of pages of an annual report establish the link with HR disclosure. The study provides the feedback to different regulatory bodies, such as the Institute of Chartered Accountants of India (ICAI), about the adequacy of current guidelines on HR disclosure for Indian corporates. The HRDI used in the study would be used by businesses as a yardstick to strengthen their HR disclosure in the future. The present study provides the important information regarding HR disclosure to various stakeholders of a company (employees, investors, and so on). Based on HR disclosure, investors can easily and better understand the future potentials of a company.

Keywords

Board Structure, HR Disclosure, Annual Report, Content Analysis, India

Full Text

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