IDEAS home Printed from https://ideas.repec.org/a/eme/arapps/ara-09-2014-0103.html
   My bibliography  Save this article

Impact of corporate characteristics on human resource disclosures

Author

Listed:
  • Surinder Kaur
  • Venkat A. Raman
  • Monica Singhania

Abstract

Purpose - Human resource (HR) disclosures are voluntary in nature in most countries including India. The voluntary nature of HR disclosures results in discrepancy in the HR disclosure practices across companies and industries. The purpose of this paper is to examine the extent of HR disclosures in annual reports of Indian listed companies and to identify their determinants in a three stage analysis. Design/methodology/approach - In the first stage a 16 item human resource disclosure index (HRDI) has been constructed for the set of CNX 200 companies listed on National Stock Exchange. Thereafter the effect of various independent variables on HRDI is analysed descriptively. Finally in the third stage HRDI has been regressed against the independent variables using regression analysis technique to identify key determinants of HRDI. Findings - The research reveals that there is high variation among sample companies as regard HRDI. The results of descriptive analysis, correlation analysis and multivariate regression analysis establish that government’s participation in ownership and market capitalisation has positive significant effect on HRDI at 1 per cent, presence of separate HR directors committee, presence of more independent directors on board at 5 per cent and cross-list America and profit after tax at 10 per cent level. Implicitly HRDI is positively affected by size of company as measured by market capitalisation. Though contrary to expectations, other variables leverage, number of employees, assets, ownership concentration, type of auditor, age, complexity of business structure, employee expense to total operating expense ratio, industry affiliation, foreign investment and proportion of non-executive directors on board are found to have moderate though insignificant influence on HRDI. Research limitations/implications - Cross-sectional design, dependence on annual reports as a primary document for disclosure and subjectivity in HRDI construction are the main limitations of the research. A longitudinal study may be carried to study the pattern of HR disclosures in future. Weighted ranking of different items of disclosures may be studied to improve the understanding of extent of disclosures. Practical implications - The HRDI as constructed in the research may be used as a benchmark by companies to improve their HR disclosures. It can also be used by accounting bodies and company regulators while deciding about standards regarding HR disclosures. Investors can also use HR disclosures made by a company as a basis to understand its financial standing and future potentials. Originality/value - The study adds to the existing literature by developing 16 item HRDI to measure the extent of disclosures by listed companies in India and thereafter by including some new propositions in the determinants of HRDI have never been tested in the existing studies. These propositions are government’s participation in ownership, separate HR committee of directors, board composition and foreign activity. These propositions have been empirically validated in this research except for foreign activity.

Suggested Citation

  • Surinder Kaur & Venkat A. Raman & Monica Singhania, 2016. "Impact of corporate characteristics on human resource disclosures," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 24(4), pages 390-425, December.
  • Handle: RePEc:eme:arapps:ara-09-2014-0103
    DOI: 10.1108/ARA-09-2014-0103
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARA-09-2014-0103/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/ARA-09-2014-0103/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/ARA-09-2014-0103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fatma Bulut Sürdü & Arzu Özsözgün Çalışkan & Emel Esen, 2020. "Human Resource Disclosures in Corporate Annual Reports of Insurance Companies: A Case of Developing Country," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    2. Kirti Aggarwal, 2021. "Relationship between Company Characteristics and HR Disclosure Level: Evidences from Indian Public Sector Companies," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 46(4), pages 399-421, November.
    3. Kirti Aggarwal, 2023. "Corporate governance and HR disclosure practices: evidence from India," SN Business & Economics, Springer, vol. 3(2), pages 1-18, February.
    4. Chidiebele Innocent Onyali & Chinedu Uchenna Okerekeoti, 2018. "Board Heterogeneity and Corporate Performance of Firms in Nigeria," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 8(3), pages 103-117, July.
    5. Alberto Quagli & Elisa Roncagliolo & Gabriele D’Alauro, 2021. "The preparedness to adopt new accounting standards: a study of European companies on the pre-adoption phase of IFRS 15," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(3), pages 290-303, September.
    6. Rupjyoti Saha & K. C. Kabra, 2020. "Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies," Business Perspectives and Research, , vol. 8(2), pages 117-138, July.
    7. Veerma Puri, 2023. "Corporate governance characteristics, financial characteristics and HR practices disclosures: an Indian scenario," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(3), pages 231-247, September.
    8. Kirti Aggarwal & Anju Verma, 2020. "Effect of Company Characteristics on Human Resource Disclosure Index: Empirical Evidences from Indian Corporates," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(1), pages 85-117, February.
    9. Albertina Paula Monteiro & Isabel-María García-Sánchez & Beatriz Aibar-Guzmán, 2022. "Labour Practice, Decent Work and Human Rights Performance and Reporting: The Impact of Women Managers," Journal of Business Ethics, Springer, vol. 180(2), pages 523-542, October.
    10. Sheshadri Chatterjee & Ranjan Chaudhuri & Demetris Vrontis, 2024. "Influence of jugaad culture on business sustainability in India," Asian Business & Management, Palgrave Macmillan, vol. 23(2), pages 287-311, April.
    11. Albertina Paula Monteiro & Beatriz Aibar-Guzmán & María Garrido-Ruso & Cristina Aibar-Guzmán, 2021. "Employee-Related Disclosure: A Bibliometric Review," Sustainability, MDPI, vol. 13(10), pages 1-38, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:arapps:ara-09-2014-0103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.