| Pub. Date | : Jan, 2022 |
|---|---|
| Product Name | : The IUP Journal of Corporate Governance |
| Product Type | : Article |
| Product Code | : IJCG10122 |
| Author Name | Kirti Aggarwal |
| Availability | : YES |
| Subject/Domain | : Management |
| Download Format | : PDF Format |
| No. of Pages | : 15 |
The present study investigates the effect of board structure on Human Resource Disclosure Index (HRDI) in Indian corporates. Indian companies from BSE-100 Index were selected for the study and the final sample consisted of 64 Indian listed companies. The data of dependent variable (HRDI) and independent variables (board structure) were gathered from the annual reports of the sample companies for a seven-year period, 2012-13 to 2018-19. To measure the level of HR disclosure, a human resource disclosure index was constructed. For analysis, descriptive statistics, Pearson's correlations matrix and OLS regression model were used. The findings of the study show that on an average, the selected companies disclose 47.13% HR information in their annual reports. Further, the regression results show that board meeting, audit committee and CEO duality have significant positive effect on HRDI. And, the rest of the variables (board size and board independence) have insignificant but positive effect on HRDI.
In the present competitive environment, the aim of businesses is to publicize their reputation by revealing essential information in their annual reports as a way of showing the stakeholders that investing in them is a good move (Gakhar and Garg, 2008; and Garg and Kumar, 2019a). The accounting disclosure provides the required details to the different stakeholders for the purpose of decreasing their uncertainty and helps them to take their investment decisions more wisely (Jensen and Meckling, 1976; Healy and Palepu, 2001; and Ala and Mohamad, 2015). The annual report contains both types of information, mandatory as well as voluntary (Garg, 1992; Garg and Verma, 1994; and Garg and Kumar, 2019a and 2019b). The mandatory disclosures are "those statutory requirements to be disclosed by the companies". The voluntary disclosure allows "the management the freedom to choose which information to disclose". The demand for voluntary disclosure has increased due to the fact that the annual report provides the information needed by the various stakeholders and serves as the basis for the investment decision to be taken by the investors and the stakeholders (Ferguson et al., 2002; Cheng and Courtenay, 2006; Garg and Divya, 2009; Damagum and Chima, 2013; and Filsaraei and Azarberahman, 2016). The American Accounting Association (AAA) defines disclosure as "the