Human capital disclosure and organizational performance

Purpose - This study aims to demonstrate the positive effect of human capital disclosure on firm performance, and to specify the boundary conditions of the relationship.Design methodology approach - The study applies the signaling and stakeholder perspectives and uses a one-year lag design to avoid...

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Bibliographic Details
Published in:Management decision 2012-11, Vol.50 (10), p.1790-1799
Main Authors: Lin, Long-Sheng, Huang, Ing-Chung, Du, Pey-Lan, Lin, Tsai-Fei
Format: Article
Language:English
Subjects:
Annual reports
Asymmetry
Boundary conditions
Capital stock
Competition
Competitive advantage
Content analysis
Disclosure
Efficiency
Employees
Human capital
Human resources
Intellectual capital
Keywords
Knowledge
Knowledge economy
R&D
Research & development
Stakeholders
Stockholders
Studies
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Summary:Purpose - This study aims to demonstrate the positive effect of human capital disclosure on firm performance, and to specify the boundary conditions of the relationship.Design methodology approach - The study applies the signaling and stakeholder perspectives and uses a one-year lag design to avoid reverse causality in exploring the human capital disclosure and performance link. Content analysis of annual reports and hierarchical regression are applied.Findings - Human capital disclosure positively impacts on organizational performance such as market-to-book ratio and ROA. Organizational size negatively moderates the relationship between disclosure of human capital information and firm performance. Knowledge intensity has curvilinear positive moderation effect between the relationship above.Practical implications - Human capital disclosure can help communicate to various stakeholders. Organizational performance can thus be enhanced through the communication process. Disclosure in the context of higher knowledge intensity is more beneficial.Originality value - The paper theoretically and empirically links up human capital disclosure and organizational performance. It also identifies both the diminishing return and increasing return moderation effects by organizational size and knowledge intensity between the human capital disclosure and performance link.
ISSN:0025-1747
1758-6070
DOI:10.1108/00251741211279602