1. Home
  2. Volume 7 - Number 3
  3. The impact of corporate attributes on voluntary HR disclosure practices: a study of Indian corporate sector
New submission
Issues
Journal Information
Aims and ScopeEditorial BoardEditorial Advisory BoardJournal Policies
Resources
For Readers
For Authors
For Editors
For Reviewers
Publication EthicsCall for Special Issue
ISSN
ISSN 2615-9821
ISSN(Previous) 2588-1396

Volume 7 - Number 3 | November 2023

The impact of corporate attributes on voluntary HR disclosure practices: a study of Indian corporate sector

Kirti Aggarwal

25/11/2023 102 0 0
Like Buy now 20.000 đ
Annual report Human resource disclosure index Content analysis Corporate characteristics Indian corporate sector

Abstract:

Purpose
The objective of the present study is to examine the impact of corporate characteristics on human resource disclosures in Indian corporate sector.

Design/methodology/approach
The study investigates the annual reports of 336 Indian listed companies of NSE-500 Index. The data are collected for the latest time period which contains eight years (FY 2012–13 to 2019–2020). The data of independent variables (company characteristics) have collected from annual reports and CMIE ProwessIQ Database of the Indian listed companies. The data of human resource dissclosure index (HRDI) is collected form annual reports using content analysis approach. For analysis purpose, descriptive statistics, Pearson's correlation matrix, Two-way Least Square Dummy Variable (LSDV) regression model have been used.

Findings
The outcomes show that net sales, market capitalisation, ROTA, return on equity, quick ratio, PAR have significant positive and age, profit after tax, current ratio have significant negative effect on HRDI. On the contrary, debt-equity ratio, earnings per share, type of auditor, listing status have insignificant positive and net fixed assets, promoter's holding have insignificant negative effect on HR disclosures of the selected Indian listed companies.

Originality/value
The HRDI constructed in the present study helps the Institute of Chartered Accountants of India (ICAI) and other regulatory bodies to make some standards regarding voluntary HR disclosure practices in Indian corporate sector.

References:

  1. Abeysekara, I. and Guthrie, J. (2004), “Human capital reporting in a developing nation”, The British Accounting Review, Vol. 36 No. 3, pp. 251-268.
  2. Aggarwal, K. (2021a), “Relationship between company characteristics and HR disclosure level: evidences from Indian Public sector companies”, Management and Labour Studies, Vol. 46 No. 4, pp. 399-421.
  3. Aggarwal, K. (2021b), “The impact of company characteristics on human resource disclosure index: a study on Service sector companies in India”, FIIB Business Review. doi: 10.1177/23197145211010871.
  4. Aggarwal, K. (2022), “Corporate characteristics and HR disclosure: a missing link in Indian corporate sector”, International Journal of Economics and Accounting, Vol. 11 No. 3, pp. 244-270.
  5. Akerlof, G.A. (1970), “The market for Lemons: quality uncertainty and the market mechanism”, The Quarterly Journal of Economics, Vol. 84 No. 3, pp. 488-500.
  6. Alam, I. and Deb, S.K. (2010), “Human Resource Accounting Disclosure (HRAD) in Bangladesh: multifactor regression analysis - a decisive tool of quality assessment”, The Cost and Management, Vol. 38 No. 3, pp. 9-13.
  7. Alsaeed, K. (2006), “The association between firm-specific characteristics and disclosure: the case of Saudi Arabia”, Managerial Auditing Journal, Vol. 21 No. 5, pp. 476-496.
  8. Ben Abdallah, M. and Bahloul, S. (2021), “Disclosure, Shariah governance and financial performance in Islamic banks”, Asian Journal of Economics and Banking, Vol. 5 No. 3, pp. 234-254.
  9. Berger, A.N. and Bonaccorsi di Patti, E. (2006), “Capital structure and firm performance: a new approach to testing agency theory and an application to the banking industry”, Journal of Banking and Finance, Vol. 30 No. 4, pp. 1065-1102.
  10. Botosan, C.A. (1997), “Disclosure level and the cost of equity capital”, The Accounting Review, Vol. 72 No. 3, pp. 323-349.
  11. Cerf, A.R. (1961), Corporate Reporting and Investment Decisions, 1st ed., University of California Press, Berkeley, CA.
  12. Cooke, T.E. (1989), “Voluntary corporate disclosure by Swedish companies”, Journal of Financial Management and Accounting, Vol. 1 No. 2, pp. 171-195.
  13. Cooke, T.E. (1992), “The impact of size, stock market listing and industry type on disclosure in the annual reports of Japanese listed companies”, Accounting and Business Research, Vol. 22 No. 87, pp. 229-237.
  14. Courtis, J.K. (1978), “Annual report disclosure in New Zealand: analysis of selected corporate attribute”, New England Accounting Research Study, Vol. 8, University of New England.
  15. Depoers, F. (2000), “A cost-benefit study of voluntary disclosure: some empirical evidence from French listed companies”, The European Accounting Review, Vol. 9 No. 2, pp. 245-263.
  16. Ellingson, D.A. and Wambsganss, J.R. (2001), “Modifying the approach to planning and evaluation in governmental entities: a balanced scorecard approach”, Journal of Public Budgeting Accounting and Financial Management, Vol. 13 No. 1, pp. 103-120.
  17. Elliott, R.K. and Jacobson, P.D. (1994), “Costs and benefits of business information disclosure: a commentary”, Accounting Horizon, Vol. 8 No. 4, pp. 80-96.
  18. Field, A. (2013), Discovering Statistics Using IBM SPSS Statistics, 3rd ed., Sage, London.
  19. Firth, M. (1980), “Raising finance and farm's corporate reporting policies”, Abacus, Vol. 16 No. 2, pp. 100-115.
  20. Fontana, F.B. and Macagnan, C.B. (2013), “Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market”, Intangible Capital, Vol. 9 No. 1, pp. 305-321.
  21. 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.
  22. Garg, M.C. and Verma, D. (2010), “Web-based corporate reporting practices in India”, The IUP Journal of Accounting Research and Audit Practices, Vol. 9 No. 3, pp. 7-19.
  23. Gray, R.H., Kouhy, R. and Lavers, S. (1995), “Corporate social and environmental reporting: a review of the literature and a longitudinal study of UK disclosure”, Accounting, Auditing and Accountability Journal, Vol. 8 No. 2, pp. 47-77.
  24. Haniffa, R.M. and Cooke, T.E. (2002), “Culture, corporate governance and disclosure in Malaysian corporations”, ABACUS, Vol. 38 No. 3, pp. 317-349.
  25. Hope, O. (2003), “Firm-level disclosures and the relative roles of culture and legal origin”, Journal of International Financial Management and Accounting, Vol. 14 No. 3, pp. 218-248.
  26. Hossain, M., Tan, L.M. and Adams, M. (1994), “Voluntary disclosure in an emerging capital market: some empirical evidence from companies listed on the Kuala Lumpur stock exchange”, The International Journal of Accounting, Vol. 29 No. 4, pp. 334-351.
  27. Hossain, M., Perera, M. and Rahman, A. (1995), “Voluntary disclosure in the annual reports of New Zealand companies”, Journal of International Financial Management and Accounting, Vol. 6 No. 1, pp. 69-87.
  28. Iatridis, G. and Alexakis, P. (2012), “Evidence of voluntary accounting disclosures in the Athens stock market”, Review of Accounting and Finance, Vol. 11 No. 1, pp. 73-92.
  29. Kang, H. and Gray, S.J. (2009), “Corporate voluntary disclosure practices: a review of content analysis research”, Indian Accounting Review, Vol. 13 No. 2, pp. 19-38.
  30. Kaur, S., Raman, V.A. and Singhania, M. (2016), “Impact of corporate characteristics on human resource disclosures”, Asian Review of Accounting, Vol. 24 No. 4, pp. 390-425.
  31. Krippendorff, K. (2004), Content Analysis: An Introduction to its Methodology, 2nd ed., Sage Publication, Thousand Oaks.
  32. Kumar, S.P. and Garg, M.C. (2019), “Relationship between Corporate Social Reporting (CSR) practices and company characteristics in Indian companies”, Finance India, Vol. 33 No. 4, pp. 1001-1014.
  33. Lev, B. and Schwartz, A. (1971), “On the use of economic concept of human capital in financial statements”, The Accounting Review, Vol. 46 No. 1, pp. 103-113.
  34. Leventis, S. and Weetman, P. (2004), “Voluntary disclosures in an emerging capital market: some evidence from the Athens Stock Exchange”, Advances of International Accounting, Vol. 17, pp. 227-250.
  35. Meek, G.K. and Gray, S.T. (1989), “Globalization of stock markets and foreign listing requirements: voluntary disclosures by European companies listed on the London Stock Exchange”, Journal of International Business Studies, Vol. 20 No. 2, pp. 315-336.
  36. Meek, G.K., Roberts, C. and Gray, S.J. (1995), “Factors influencing voluntary disclosure annual report disclosures by U.S., U.K. and Continental European Multinational Corporations”, Journal of International Business Studies, Vol. 96 No. 3, pp. 555-572.
  37. Nazli, A.M.G. (2008), “Voluntary disclosure in Malaysian corporate annual reports: views of stakeholders”, Social Responsibility Journal, Vol. 4 No. 4, pp. 504-516.
  38. Owusu-Ansah, S. (1998), “The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe”, International Journal of Accounting, Vol. 33 No. 5, pp. 605-631.
  39. Oyelere, P., Laswad, F. and Fisher, R. (2003), “Determinants of internet financial reporting by New Zealand companies”, Journal of International Financial Management and Accounting, Vol. 14 No. 1, pp. 26-63.
  40. O'Dwyer, B. (2002), “Managerial perceptions of corporate social disclosure: an Irish story”, Accounting, Auditing and Accountability Journal, Vol. 15 No. 3, pp. 406-436.
  41. Pandey, K.D. and Sahu, T.N. (2019), “Debt financing, agency cost and firm performance: evidence from India”, Vision, Vol. 23 No. 3, pp. 267-274.
  42. Pareek, R., Pandey, K.D. and Sahu, T.N. (2019), “Corporate governance, firms' characteristics and environmental performance disclosure practices of Indian companies”, Indian Journal of Corporate Governance, Vol. 12 No. 2, pp. 142-155.
  43. Pareek, R., Pandey, K.D., Sahu, T.N. and Gupta, A. (2020), “Board independence and sustainability disclosure practices in Indian companies”, Abhigyan, Vol. 38 No. 3, pp. 1-9.
  44. Raffournier, B. (1995), “The determinants of voluntary financial disclosure by Swiss listed companies”, The European Accounting Review, Vol. 4 No. 2, pp. 261-280.
  45. Singhvi, S. and Desai, H. (1971), “An empirical analysis of the quality of corporate financial disclosure”, Accounting Review, Vol. 46 No. 1, pp. 129-138.
  46. Spence, M. (1973), “Job market signaling”, The Quarterly Journal of Economics, Vol. 87 No. 3, pp. 355-374.
  47. Sultana, R., Ghosh, R. and Sen, K.K. (2022), “Impact of COVID-19 pandemic on financial reporting and disclosure practices: empirical evidence from Bangladesh”, Asian Journal of Economics and Banking, Vol. 6 No. 1, pp. 122-139.
  48. Vithana, K., Soobaroyen, T. and Ntim, C.G. (2021), “Human resource disclosures in UK corporate annual reports: to what extent do these reflect organisational priorities towards labour?”, Journal of Business Ethics, Vol. 169 No. 3, pp. 475-497.
  49. Wallace, R.S.O. and Naser, K. (1995), “Firm-specific determinants of comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the stock exchange of Hong Kong”, Journal of Accounting and Public Policy, Vol. 14 No. 4, pp. 311-368.
  50. Wallace, R.S.O., Naser, K. and Mora, A. (1994), “The relationship between the comprehensiveness of corporate annual reports and firm characteristics in Spain”, Accounting and Business Research, Vol. 25 No. 97, pp. 41-53.
  51. Watts, R.L. and Zimmerman, J.L. (1983), “Agency problems, auditing, and the theory of the firm: some evidence”, The Journal of Law and Economics, Vol. 26 No. 3, pp. 613-633.

 

Related articles