Reporting human resources in annual reports: An empirical evidence from top Indian companies

Abstract

Purpose

The purpose of this paper is to investigate the extent of corporate disclosure on human resources (HR) in the annual reports of top performing Indian companies.

Design/methodology/approach

The paper explores the extent to which top 82 companies from India present information about HR in their annual reports. This study examines the annual reports of each of the top Indian firms listed on the Bombay stock exchange, using the “content analysis” method. Statistical tests have been performed to analyse the difference between the HR disclosure score across public and private sectors and disclosure variations among various industrial sectors.

Findings

In-house training programmes has been noticed to be the favourite item of disclosure followed by safety awards/certifications and statements regarding cordial relations with the employees/unions. A majority of the Indian firms have ignored significant HR issues such as employee welfare fund, maternity/paternity leaves, holiday benefits, employee loans and adopting old age homes, etc. Overall, the study reflects low HR related disclosures. No statistically significant difference has been found between the mean HR disclosure from one industry to another and disclosure practices of the private and the public sector companies.

Practical implications

The disclosure pattern of the Indian companies suggests that they only a few companies are concerned about employees’ welfare than the rest. This may motivate a change of the disclosure policy of the rest of the firms who may follow the reporting pattern of the most disclosing ones.

Originality/value

This is first study on the disclosure of HR by the Indian corporate sector in the CSR domain with a disclosure analysis for a period of nine years . This research provides new directions for the literature in this area and may promote comparative studies on HR-based studies from different perspectives.

Citation

Kansal, M. and Joshi, M. (2015), "Reporting human resources in annual reports: An empirical evidence from top Indian companies", Asian Review of Accounting, Vol. 23 No. 3, pp. 256-274. https://doi.org/10.1108/ARA-04-2014-0051