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Determinants and effects of human capital reporting and controlling

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  • Klaus Möller
  • Ramin Gamerschlag
  • Finn Guenther

Abstract

Human capital is one of the most important organizational resources. Nevertheless, companies’ internal and external management control and reporting instruments only marginally take human capital into account. The purpose of this paper is therefore twofold: In the first section, we empirically identify the drivers influencing external human capital reporting by assuming that companies reporting on their human capital use the same information that they do for internal control purposes. We thus extract this information from corporate annual reports by means of content analysis. Subsequently, we analyze 130 listed German companies’ number of human capital disclosures and their content. Our results show that human capital reporting is influenced by firm size, industry membership, and shareholder structure. In the second section, we introduce an indicator-based instrument for active human capital controlling. That is, we show how human capital can be actively controlled with regard to corporate strategy and, thus, be integrated into traditional management control instruments. Copyright Springer Verlag 2011

Suggested Citation

  • Klaus Möller & Ramin Gamerschlag & Finn Guenther, 2011. "Determinants and effects of human capital reporting and controlling," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(3), pages 311-333, November.
    • Handle: RePEc:spr:metrik:v:22:y:2011:i:3:p:311-333
    DOI: 10.1007/s00187-011-0138-3
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    2. Byron A. Brown & Afifa Patel & Veronica Ofaletse, 2016. "Categories of Intellectual Capital Disclosed by Service-based Companies in Botswana," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 7(4), pages 45-60, November.
    3. Kirti Aggarwal & Anju Verma, 2020. "Effect of Company Characteristics on Human Resource Disclosure Index: Empirical Evidences from Indian Corporates," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(1), pages 85-117, February.

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