scholarly journals Human Capital Disclosures in Swedish State-Owned Enterprises—A Comparison of Integrated Reporting Versus Traditional Reporting

2018 ◽  
pp. 55-75
Author(s):  
Gunnar Rimmel
Keyword(s):  
Human Capital ◽  
Integrated Reporting

The financial consequences of human capital disclosure as part of integrated reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Salvi ◽  
Nicola Raimo ◽  
Felice Petruzzella ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Fixed Effects ◽  
Cost Of Capital ◽  
Positive Impact ◽  
Firm Risk ◽  
Integrated Reporting ◽  
Content Type ◽  
Financial Consequences ◽  
The Cost

PurposeThe purpose of this paper is to analyse the financial consequences of the level of human capital (HC) information disclosed by firms through integrated reports. Specifically, this work examines the effect of HC information on the cost of capital and firm value.Design/methodology/approachA manual content analysis is used to measure the level of HC information contained in integrated reports. A fixed-effects regression model is used to analyse 375 observations (a balanced panel of 125 firms for the period 2017–2019) and test the financial consequences of HC disclosure.FindingsThe empirical outcomes indicate that HC disclosure has a significant and negative effect on the cost of capital and a positive impact on firm value. Our results show that companies can reduce investors' perceived firm risk by improving HC disclosure, leading to a lower cost of capital. Moreover, our findings support the notion that increased levels of HC disclosure are linked to firms' improved access to external financial resources, consequently enhancing firm value.Originality/valueThis study is the first contribution to examine the financial consequences of HC disclosure and is one of the first to examine the level of HC information within integrated reports.

scholarly journals The Human Capital for Value Creation and Social Impact: The Interpretation of the IR’s HC Definition

2021 ◽  
Vol 13 (13) ◽  
pp. 6989
Author(s):  
Maurizio Cisi ◽  
Francesca Alice Centrone
Keyword(s):  
Human Capital ◽  
Value Creation ◽  
Social Impact ◽  
Integrated Reporting ◽  
For Profit ◽  
Not For Profit ◽  
Human Resources Managers ◽  
Definition Of ◽  
Depth Interviews ◽  
Selection Of

The paper aimed at assessing and identifying in a comparative way the potentiality and suitability of the Integrated Reporting (IR)’s definition of human capital (HC) within a selection of companies and social cooperatives. Employing in-depth interviews, the qualitative study analyzed the points of view of a selection of human resources managers to firstly check and test the connection between human capital, value creation, and social impact. The contribution of human capital to value creation is not easily recognized, especially by smaller-sized companies. The results suggested that the HC definition of the IR in the for-profit sector seems to be more applicable to the top management than to the whole workforce, while it appears as “fitting” for the managers of social cooperatives because of its explicit focus on ethical values, loyalty, and motivation. This allowed opening possible channels of dialogue between the profit and not-for-profit sectors. The paper proposed practical recommendations to operationalize the IR’s HC definition.

scholarly journals THEORETICAL AND APPLIED ASPECTS OF ANALYSIS OF INTEGRATED REPORTING OF AGRICULTURAL CORPORATIONS: HUMAN CAPITAL

2021 ◽  
Vol 2 (2) ◽  
pp. 29-36
Author(s):  
Ruslan Kostyrko ◽  
Denys Prozorov
Keyword(s):  
Human Capital ◽  
Financial Reporting ◽  
Critical Evaluation ◽  
Well Being ◽  
Organic Production ◽  
International Standards ◽  
Global Reporting Initiative ◽  
Integrated Reporting ◽  
Disclosure Of Information ◽  
The Impact

The purpose of the paper is to improve scientific and applied aspects of analysis of integrated reporting of agricultural corporations on the example of human capital indicators. Methodology. Theoretical aspects of the study are based on the international standards of the Global Reporting Initiative and AccountAbility. Applied aspects are the generalization and critical evaluation of the form, content, quantitative and qualitative indicators of integrated reporting of agricultural corporations. The results of the paper are to define non-financial reporting as an integrated format of information on natural, industrial, financial, human, intellectual, social, institutional capital of enterprises. It is shown that the development of the system of formation and presentation of integrated reporting is influenced by two trends that are somewhat mutually exclusive: firstly, supranational regulation by GRI and AA1000 standards; secondly, the voluntary nature and predominance of content over form, which cause significant differences in formats and the difficulty of conducting a comparative analysis of reporting enterprises. It is proved that integrated reporting is a comprehensive set of quantitative and qualitative indicators, which are divided into general, common to all enterprises of the national economy, and specific, inherent in certain types of economic activity. For agricultural corporations, the latter are: protection of agricultural lands, animal well-being, state and directions of development of organic production, etc. The components of integrated reporting of four agricultural corporations of Ukraine are summarized. Their similarity is determined by the substantive characteristics associated with the disclosure of information about the impact of the enterprise on the environment, social and economic impact, corporate governance, animal well-being. The differences are related to the form of presentation of information, the number of sections of integrated reporting. The conceptual basis of human capital management and features of program in separate researched agrarian corporations are generalized. The analysis of human capital as an object of integrated reporting of agricultural corporations on the indicators of the total number of staff, its permanent and seasonal part, gender composition, categories of employees, age, and duration of training has been performed. Practical implications are the development of recommendations aimed at eliminating the shortcomings of the disclosure of information about human capital associated with the prevalence of quantitative indicators over qualitative ones. It is proposed to use indicators of labor productivity, average wages compared to the industry level, as well as motivational mechanisms for staff in the form of corporate health insurance. Value/originality. The necessity of data integration is substantiated not only at the level of the non-financial report, but also at the level of separate sections, which is advisable to be represented by separate types of capital. On the example of the section “Human capital” it is recommended to highlight the units related to its economic, social, cultural, intellectual development, etc. in its composition.

Factors affecting human capital disclosure in an integrated reporting perspective

2020 ◽  
Vol 24 (4) ◽  
pp. 575-592 ◽  
Author(s):  
Nicola Raimo ◽  
Alessandra Ricciardelli ◽  
Michele Rubino ◽  
Filippo Vitolla
Keyword(s):  
Human Capital ◽  
Agency Theory ◽  
Integrated Reporting ◽  
Board Diversity ◽  
Content Type ◽  
Factors Affecting ◽  
Corporate Executives ◽  
Theory Application ◽  
High Level ◽  
Value Creation Process

Purpose Human capital (HC) represents a particularly important element capable of guiding the firms’ value creation process in the new economy. The purpose of this study is to analyze the level of HC information contained within integrated reports and to identify the variables that influence the HC disclosure policies of companies. Design/methodology/approach Research hypotheses, developed on the basis of agency theory, were tested using a regression model on a sample of 137 worldwide companies. A HC disclosure index was designed to examine the level of HC disclosure and a content analysis was used to investigate the integrated reports. Findings Results showed a positive and significant impact of firm size, board size, board independence and board diversity on the level of HC information disclosed by companies within their integrated reports. On the contrary, they demonstrated a not significant effect of firm profitability. Practical implications Results have important implications for corporate executives, high-level corporate governance, policymakers and investors. They point out additional further motivations for creating larger boards and including non-executive members and women on the board. In addition, investors could use the HC disclosure index to evaluate companies’ HC disclosure policies in their investment decisions. Originality/value This study extends the agency theory application scope and extends the analysis of HC disclosure to other corporate documents, namely, integrated reports. Besides, it increases knowledge about the factors capable of influencing HC disclosure, identifying a series of elements capable of directly affecting the level of information that companies disclose.

scholarly journals Features of the Display of Social and Labor Indicators in the Integrated Reporting

2021 ◽  
Vol 2 (517) ◽  
pp. 239-244
Author(s):  
M. Y. Karpushenko ◽  
◽  
D. S. Shakhverdyan ◽  
Keyword(s):  
Human Capital ◽  
Financial Information ◽  
Social Activities ◽  
Integrated Reporting ◽  
Regulatory Requirements ◽  
Formula One ◽  
Nature Of Information ◽  
Strategic Goals ◽  
Labor Resources ◽  
Management Report

Integrated reporting enables to provide interested users with non-financial information, including data about social activities and enterprise staff. Labor resources are a necessary source that causes the development of the company, and effective investment in human capital allows achieving strategic goals in a minimum amount of time. Consequently, the reflection in the reporting of human capital data is of great value, since currently investing in this type of capital amounts to a significant share. The nature of information about human capital and strategies for its management is subject to disclosure in integrated reporting and allows users to valuate the efficiency of such investments. The publication is aimed at considering the peculiarities of the preparation of integrated reporting in terms of social and labor indicators, with a substantiation of such indicators. An analysis of functions and constituents of integrated reporting, principles of formation of integrated reporting in accordance with the international standard of integrated reporting is carried out. The composition of the management report in accordance with regulatory requirements, as well as the composition of the report on the management of a number of enterprises are analyzed. On this basis, a proposal as to the list of social and labor indicators of integrated reporting is formed and formulas for their evaluation to integrate all indicators into a single one are suggested. Using this formula, one can compare different enterprises and draw a reasonable conclusion about the work of the enterprise in this direction. In the future, the development of integrated reporting should be aimed at developing and refining the system of indicators and generalizing management provision in the process of preparing internal integrated reporting.

scholarly journals Development directions of the audit of organization’s human capital

2020 ◽  
pp. 70-74
Author(s):  
O. A. Soboleva
Keyword(s):  
Sustainable Development ◽  
Human Capital ◽  
Quality Indicators ◽  
Reporting System ◽  
Integrated Reporting ◽  
Financial Reports ◽  
Financial Report ◽  
Source Data ◽  
Financial Quality

The article substantiates the relevance of developing a methodology and techniques for auditing the human capital (HC) of an organization, due to the fact that users of company reporting have new needs for nonfinancial data, along with financial reports. This dictated the development of an integrated reporting system (IIRC) and sustainable development reporting (GRI). The author identifies problems and systematizes the main directions of development of the audit of the organization’s HC as an element of integrated reporting. The article proposes the author’s approach to the audit of corporate human capital, which includes such stages as: the formation of a group of specialists in preparing a non-financial report on corporate human capital and approval of the coordination of work of all members of the group; collection and consolidation of the necessary information about the HC, verification of the correctness of the source data, determination of significant indicators; auditor verification of non-financial, quality indicators; publication of an integrated report, preparation of a conclusion on the reliability of the information presented therein.

scholarly journals ВІДОБРАЖЕННЯ ІНФОРМАЦІЇ ПРО КАПІТАЛИ В ІНТЕГРОВАНІЙ ЗВІТНОСТІ

2021 ◽  
pp. 67-73
Author(s):  
Денис Вікторович Прозоров
Keyword(s):  
Human Capital ◽  
Value Added ◽  
International Standards ◽  
Information Support ◽  
Practical Significance ◽  
Integrated Reporting ◽  
Basic Principles ◽  
Advantages And Disadvantages ◽  
Disclosure Of Information ◽  
The Given

Formulation of problem. Meeting the needs of stakeholders for the disclosure of financial and non-financial information about the effectiveness of enterprises actualizes the solution of disclosure of information about the contribution of capital to the creation of value added in integrated reporting. The aim of the article is research of problems of formation of the integrated reporting and justification of scientific and methodical recommendations about reflecting indicators of the formation and use of capital in reporting. The object of the research is the process of the formating accounting and analytical information in integrated reporting. Methods used in the research: logical and informative, scientific generalization, induction, deduction, analysis, synthesis. The hypothesis of the research is the assumption about improving the information support for integrated reporting by disclosing information about capital in accordance with the requirements of international standards that will contribute to increasing the effectiveness of management decisions about creation of value and addressing informational needs of stakeholders. The statement of basic materials. Based on the research, the structure of integrated reportings of individual companies is analyzed, their advantages and disadvantages, the basic principles of the formation of integrated reporting are determined, indicators of integrated reporting in terms of six types of capitals are disclosed, the stages of formation of the information about human capital in the integrated reporting are determined. The originality and practical significance of the research is the description of the information about capital in integrated reporting of scientific and methodical recommendations for the disclosure of information about the capital of integrated reporting and the formation of information and analytical platform for human capital Conclusions and perspectives of further research. The research proves that the disclosure of information about capital in integrated reportingt allows to form the mission and vision about the prospects of increasing value for the future. The given system of indicators characterizing efficiency of human capital allows to estimate the contribution of the capital in creation of value of the enterprise and to form strategy of its sustainable development.

Human Capital

2007 ◽  
Author(s):  
R. Rajaram
Keyword(s):  
Human Capital
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