Relationship between Human Resource Disclosure and Company Attributes: An Empirical Study on Textile Companies in Bangladesh

Md Hafij Ullah,Md Helal Uddin,Ruma Khanam

doi:10.5296/ijafr.v4i2.6708

Abstract

Human Resource (HR) disclosure in Textile companies in a developing country with abundance of human resources like Bangladesh is a new flavor in social accounting literature. The study is an investigation of HR disclosure practices and its relationship with the company specific attributes of all 29 listed Textile companies in Bangladesh. The study considered 81 human resource items under eight different classes which are expected to be disclosed in the annual report. The study found that though some graphs, charts and pictures were used for HR disclosure but most of the information was disclosed in narrative form. Sample companies on an average disclosed about 50% and about 60% companies disclosed less than 50% of the expected HR items and HR disclosure is significantly related with the size of the companies measured by gross revenue. The study expects that textile companies would disclose more HR information in future to attract more promising employees.

Highlights

Human Resource is the key element of any organization and HR are the foremost vehicle in achieving the goals
As a voluntary disclosure area of HR information in the annual report, he study observed that Textile companies in Bangladesh on an average disclosed about 50% of the listed expected information
The sample companies disclosed HR information satisfactorily using sufficient number of words and sentences, but the use of charts, Graphs and pictures are not considered sufficient for maximum companies

Summary

Introduction

Human Resource is the key element of any organization and HR are the foremost vehicle in achieving the goals. The main objective of HRA is to facilitate the effective and efficient management of human resources (Porwal, 1993). According to Sveiby (1997), human capital and structural capital concept are similar to other assets. Moore (2007) suggests that the value of human capital should be more fully considered when making decisions about the acquisition and disposal of people But the monetary value assumption of accounting does not allow reporting value of organization employees in organization‘s financial report because value of HR is difficult to measure in monetary value. Stakeholders are being deprived of getting valuable information about the human resources of their organization (Hossain, et al, 2004)

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Conclusion