Browsing by Author "Scholtz, Kelly"
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- ItemInfluence of board characteristics on human capital disclosure using the SABPP HR reporting framework(Stellenbosch : Stellenbosch University, 2024-03) Scholtz, Kelly; Magau, Mpho D.; Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Industrial Psychology.ENGLISH SUMMARY: Disclosure of human capital in annual reports is increasingly becoming crucial in corporate disclosure and for responsible investing, yet the executive board of directors seems less transparent with people-related information. Human capital disclosure allows the investment community to dissect the impact of human resource solutions on organisational performance and future business earnings, hence the public-listed companies are expected to reduce information asymmetry by aligning with the international corporate reporting requirements. The aim of this study was to examine the influence of the board characteristics on human capital disclosure using the human resource reporting framework of the South African Board for People Practices as an assessment tool. Specifically, the board characteristics were the size, gender diversity, structure, meeting attendance, education, experience and age, which were key predictors of human capital disclosure in the study. A quantitative-based cross-sectional design approach was applied to a sample of the top 100 companies listed on the Johannesburg Stock Exchange for the year 2021. The population of this study includes all listed companies on the Johannesburg Stock Exchange for the year 2021. In terms of the measurement instrument, a human capital disclosure index was constructed based on the South African Board for People Practices human resource reporting framework containing five dimensions, namely, human capital availability (10 items), human capital wellbeing (10 items), human capital investment and growth (7 items), human capital contribution (5 items) and human capital wealth creation (7 items). The Statistics Package for Social Sciences was used to analyse data by computing descriptive, correlations and multiple regression outputs. The results indicated that board meeting attendance plays a significant role in disclosing information on human capital attraction, investment, and value-add towards investor confidence than the other board characteristics. Therefore, human resource executives are expected to lead people management systems that provide the board of directors with credible and accurate value-relevant information for integrated reporting. The limitation of the study is the focus on the integrated reports as sources of human capital disclosure, yet the sustainability reports also contain people-related information. Lastly, cross-sectional data does not provide patterns of human capital disclosure over a period, which can be obtained through panel data analysis. These fundamental gaps serve as potential areas for future research to be explored using a sample of more than 100 Johannesburg Stock Exchange-listed companies.