Annual reporting practices: Human capital information by Malaysian services companies

Noradiva Hamzah, Mohamat Sabri Hassan, Zakiah Muhammaddun Mohamed, Azlina Ahmad, Shukriah Saad

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The importance of human capital reporting has increased in recent years. Stakeholders such as fnancial analysts and investors are calling for more transparency and fuelling interest in the value that employees bring into a company. To date, annual reports rarely provide quantitative data on human capital; the information provided is often general and of little value. This study examines the human capital disclosure practices of listed services companies in Malaysia. The study uses a qualitative approach of content analysis to analyze disclosure in the 2009 annual reports of companies. The fndings reveal that human capital disclosure varies across industries. This study indicates that majority of frms (in trading and services, fnance, and hotel industries) generally provide more information on the related attribute of "employees". Among the three industries, the fnance industry provides the highest frequency. However, frms in the technology industry disclose more information on attributes related to "training and development". These fndings indicate that the nature of work expectation leads to variance of disclosure on human capital attributes (HCA) among frms within the services industries. Technology frms disclose more information on training and development to indicate that these attributes will help their employees stay updated with new developments in the technology industry. This study also indicates that there is inconsistency in disclosing HCA among frms in the services industry. Firms in the fnance, technology, and hotel industries disclose more information on "facilities and benefts provided" whereas frms in the trading and services industry disclose more on attributes related to "effort for human capital development".

Original languageEnglish
Pages (from-to)53-62
Number of pages10
JournalJurnal Pengurusan
Volume37
Publication statusPublished - 2013

Fingerprint

Human capital
Industry
Service industries
Disclosure
Employees
Annual reports
Hotel industry
Training and development
Stakeholders
Analysts
Human capital development
Qualitative approaches
Transparency
Investors
Malaysia
Content analysis
Inconsistency

Keywords

  • Human capital disclosure
  • Human capital reporting
  • Qualitative approach

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Accounting
  • Business and International Management

Cite this

Annual reporting practices : Human capital information by Malaysian services companies. / Hamzah, Noradiva; Hassan, Mohamat Sabri; Mohamed, Zakiah Muhammaddun; Ahmad, Azlina; Saad, Shukriah.

In: Jurnal Pengurusan, Vol. 37, 2013, p. 53-62.

Research output: Contribution to journalArticle

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