Building on an integration of strategic human resource capital management and human capital disclosure literature streams, this paper explores the associations between human…
Abstract
Purpose
Building on an integration of strategic human resource capital management and human capital disclosure literature streams, this paper explores the associations between human resource performance and human resource disclosure in the financial services sector.
Design/methodology/approach
Using content analysis and panel regression methods, the paper examines the extent, nature, and information content of human capital disclosures in the financial services sectors in North America during the global financial crisis period.
Findings
Labor costs and marginal labor productivity are significantly associated with human resource disclosure and the latter is significantly related to both financial (explicit) and non-financial (implicit or relational) components of the employment relationship. Results show inverted effects between the US and Canadian samples. The findings support a contingency view or “best-fit” approach to human resource capital management.
Practical implications
Differences in labor market structures and human capital attributes could have significant impacts on human capital disclosure strategies. More transparent and detailed disclosures regarding human resource capital management may provide useful and relevant information for investors and stakeholders in general.
Originality/value
The study provides insights into how labor market structures and human capital attributes jointly affect the extent and nature of corporate disclosures with regards to rents distribution and relational governance between employers and employees.
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Kaouthar Lajili, Michael Dobler, Daniel Zéghal and Mitchell John Bryan
This paper aims to investigate the attributes and information content of risk reporting in two different institutional and regulatory, namely, Canadian and German, settings during…
Abstract
Purpose
This paper aims to investigate the attributes and information content of risk reporting in two different institutional and regulatory, namely, Canadian and German, settings during the period surrounding the financial crisis of 2008.
Design/methodology/approach
For a matched sample of manufacturing firms in the period 2006–2010, this study conducts a detailed content analysis of annual reports to assess and compare the volume and patterns of risk disclosures. Panel regressions are used to explore how risk disclosures related to corporate risk proxies and performance indicators.
Findings
Over the sample period, Canadian and German firms increase the volume but largely maintain the patterns of risk disclosures. Risk disclosures relate to corporate risk proxies but are not incrementally informative to assess firm performance.
Originality/value
The paper contributes to research on risk reporting by providing detailed cross-country evidence for a period particularly shaped by significant risk. The findings have implications for the regulation and usefulness of risk reporting.
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This research paper examines the information content and managerial incentives for labour cost voluntary disclosures for a sample of United States publicly traded companies. We…
Abstract
This research paper examines the information content and managerial incentives for labour cost voluntary disclosures for a sample of United States publicly traded companies. We focus on labour productivity and managerial efficiency in labour usage and argue that these human capital indicators could provide valuable information to capital market participants seeking human resource‐type of performance measures and signals. Labour productivity and efficiency indicators are estimated following a production function approach and are included in logistic regressions to help explain and predict labour cost voluntary disclosure decisions. We find that labour productivity and managerial efficiency in labour use indicators are generally different between disclosing and non‐disclosing firms, and that proprietary information costs and political cost proxies are significantly related to labour costs voluntary disclosure, consistent with previous literature. These empirical results corroborate the ‘proprietary information’ hypothesis of voluntary disclosure where the strategic costs of disclosure outweigh the signaling benefit from disclosing human capital information.
Kaouthar Lajili, Marko Madunic and Joseph T. Mahoney
This article classifies empirical research on vertical integration under four approaches – value-added-to-sales, qualitative–quantitative, input–output, and microanalytic. The…
Abstract
This article classifies empirical research on vertical integration under four approaches – value-added-to-sales, qualitative–quantitative, input–output, and microanalytic. The emphasis here is on the microanalytic approach which has accumulated the most systematic evidence to support its theoretical propositions. In particular, this article emphasizes theoretical and empirical contributions from organizational economics (especially transaction costs and agency theories) for both vertical integration and (vertical) contracting. Limitations and methodological challenges concerning the empirical testing of theories of vertical integration are addressed and suggestions for further research are provided.
Michael Dobler, Kaouthar Lajili and Daniel Zéghal
This paper aims to propose and apply a novel risk-based approach to explore whether socio-political theories explain the level of corporate environmental disclosures given…
Abstract
Purpose
This paper aims to propose and apply a novel risk-based approach to explore whether socio-political theories explain the level of corporate environmental disclosures given inconclusive evidence on the relation between environmental disclosure and environmental performance.
Design/methodology/approach
Based on content analysis of corporate risk reporting, the paper develops measures of environmental risk to proxy for a firm’s exposure to public pressure in regard to environmental concerns that should be positively associated with the level of corporate environmental disclosures according to socio-political theories. Multiple regressions are used to test the predictions of socio-political theories for US Standards and Poor’s 500 constituents from polluting sectors.
Findings
The level of environmental disclosures is found to be positively associated with a firm’s environmental risk while unrelated to its environmental performance. The findings suggest that firms tend to provide higher levels of environmental disclosures in response to greater exposure to public pressure as depicted by broad environmental indicators. The results are robust to alternative measures of environmental disclosures, environmental risk and environmental performance, alternative specifications of the economic model and additional sensitivity checks.
Research limitations/implications
This study is limited to US firms in polluting sectors. The risk-based approach proposed may not be appropriate to cover sectors where corporate risk reporting is less likely to address environmental risk, but it could potentially be adopted in other countries with advanced risk reporting regulation or practice.
Practical implications
Findings are important to understand a firm’s incentives to disclose environmental information. Cross-sectional differences found in environmental disclosures, risk and performance, highlight the importance of considering industry affiliation when analyzing environmental data.
Originality/value
This paper is the first to use firm-level environmental risk variables to explain the level of corporate environmental disclosures. The risk-based approach taken suggests opportunities for research at the multi-country level and in countries where corporate environmental performance data are not publicly available.
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David J. Ketchen and Donald D. Bergh
Welcome to the fourth volume of Research Methodology in Strategy and Management (RMSM). The publication of our fourth volume provides a source of satisfaction because our original…
Abstract
Welcome to the fourth volume of Research Methodology in Strategy and Management (RMSM). The publication of our fourth volume provides a source of satisfaction because our original contract with Elsevier only guaranteed a three volume run for the series. The popularity of RMSM led our contacts at the publisher to be eager to continue beyond their original commitment. We are excited about the future of the series, and have begun assembling Volume 5.