Impact of Contextual Factors on HRM Disclosure Practices of Foreign Companies in India

Shalini Shukla

Assistant Professor, Department of Management,

Sikkim University, Gangtok, Sikkim, India

J K Sharma

Professor (Ex), Department of Business Administration,

University of Lucknow, Lucknow, UP, India

Abstract

This paper investigates the impact of contextual variables such as continent, country of origin, growth stage of country and industry representation on the inclusion/disclosure of HRM related information in annual reports of the foreign companies operating in India. The empirical identifies 203 companies with more than 50 per cent foreign shareholding and utilize content analysis approach to collect data by examination of their annual reports. HRM information disclosure by companies is more impacted by country of origin as well as continent as compared to being influenced by industry sector. It is seen that extent of terms related to HRM issues in annual reports of foreign companies is more influenced by country of origin of companies. The industry sector to which the company belongs and the growth stage of the country of origin however are found to impact the extent of usage of HRM terms in management discussion and analysis part of the annual report. The study is confined to disclosure practices of MNCs operating in India as reflected through their standalone annual reports. Documenting variation in HRM information inclusion/disclosure practices of foreign companies operating in India provides insights to importance given to human resource management in corporate disclosures. Being strategic key area, human resource skills, potential and abilities affect the performance of companies which in turn is expected to find mention in the annual reports.

Keywords: HRM, Content analysis; Information disclosure; Management of people.

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