Abstract
Employees are key stakeholders for companies to maintain their sustainability. Obtaining and disclosing information related to employees can help companies to manage and evaluate the effectiveness of human resources. This paper investigates human resource disclosures in corporate annual reports of 54 insurance companies in Turkey and identifies the determinants of the disclosure for the period of 2007–2017. For this purpose, human resource disclosures with eight subdimensions as employee health and safety, employment of minorities or women, disabled employee, employee training, employee assistance and benefits, employee remuneration, employee profiles and employee morale were obtained from corporate annual reports by content analysis. The data were statistically tested with correlation analysis and a pooled OLS (Ordinary Least Squares) models to determine the effects of return on assets, return on equity, leverage, firm size, number of employees, age of firm, public listing status, foreign ownership, company type on these disclosures. The results indicate that number of employees, foreign ownership and company type have an effect on the extent of human resource disclosure. Employee training is the most disclosed item among human resource disclosures in corporate reports. It is suggested that companies should improve their reporting and disclosure practices related to human resource development.
Highlights
The research question is formulated as “what are the extent of human resource disclosure in corporate annual reports?” and “which determinants are related with the human resource disclosures in corporate annual reports of insurance companies?”
The most used human resources disclosures (HRD) theme was found as training and staff development
The aim of this study is to investigate the human resources disclosure practice’ of insurance companies by Turkish companies and to analyze the potential relationship between a number of insurance companies’ characteristics—in particular, return on assets (ROA), return on equity (ROE), leverage (LEV), size (SIZE), number of employees (NEP), firm age (AGE), public listing status (BIST), foreign ownership (FOREGING) and type of firm (TYPE)—and the extent of human resources disclosure
Summary
The research question is formulated as “what are the extent of human resource disclosure in corporate annual reports?” and “which determinants are related with the human resource disclosures in corporate annual reports of insurance companies?”Human resources are the most vital assets of the companies to maintain their sustainability since they are source of the knowledge, skills, and competence. Human resource disclosure is valuable for organizations to provide information about efficiency and effectiveness of their human resource practices to management and society [1]. It creates benefit for employees and has a good influence on corporate reputation [2]. Stakeholders demand to be informed about the effect of human resources on company’s value and concern the effect of organizations on employees’ wellbeing [3]. There is a need to understand how human resources information are voluntarily reported in corporate reports [4]. Human resource disclosing tries to report the financial consequences of factors possessed by employees and entire workforce of an organization [5]
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