Human Capital Disclosure and Financial Performance: Evidence from Indonesian Resource-Based Public Companies
Main Article Content
Abstract
Purpose: This study examines whether the quality of human capital disclosure is associated with firm financial performance among Indonesian public companies operating in resource-related industries. Design/Methodology/Approach: The study employs a quantitative secondary-data design using annual reports, sustainability reports, and audited financial statements. A Human Capital Disclosure Index (HCDI) is developed from publicly disclosed information covering workforce information, human capital development, talent management, employee welfare, and strategic human capital. Financial performance is measured using return on assets (ROA) and return on equity (ROE). Panel-data regression is used to test the association between HCDI and financial performance while controlling for firm size, leverage, growth, and firm age. Findings: The empirical analysis evaluates whether greater human capital transparency is associated with stronger asset and equity returns and whether the relationship differs across state-owned and private enterprises. Conclusion: The study positions human capital disclosure as a measurable bridge between human resource development and financial performance. Practical Implications: The framework provides managers and policymakers with a reproducible tool for assessing human capital reporting and its relationship with financial value creation.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
Bianchi Martini, S., Corvino, A., Doni, F., & Rigolini, A. (2014). Human capital disclosure: A determinant of firm growth and financial performance—Empirical evidence from European listed companies. European Journal of Management, 14(2), 153–175.
Feliana, Y. K., & Novita, E. (2018). Value relevance human capital information on the annual report of Indonesia listed companies. Jurnal Keuangan dan Perbankan, 22(4). https://doi.org/10.26905/jkdp.v22i4.1945
Muttakin, M. B., Khan, A., & Belal, A. R. (2015). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy. Journal of Business Ethics, 129, 511–527.
Quantifying human capital disclosure in China with textual analysis. (2025). China Accounting and Finance Review. https://doi.org/10.1108/CAFR-08-2024-0109
Samad, A. W. (2025). An organizational culture, leadership style and innovative behaviour on performance of the organization. Journal of Center for Energy Policy and Human Resources Capacity Development, 1(1), 1–17.
Samad, A. W., & Setiyadi, M. W. R. (2025). The integration of green economy and human resource behavior in bridging the discrepancy gap towards sustainable development. Journal of Center for Energy Policy and Human Resources Capacity Development, 2(1), 19–36. https://doi.org/10.66226/journalofcphrcd.v2i1.23
Samad, A. W., Mega Utama, Z., Setiyadi, M. W. R., & Muliyati. (2026). Strategic human capital transformation for global SMEs: Leveraging artificial intelligence and digital capabilities to achieve sustainable competitive advantage. Journal of Center for Energy Policy and Human Resources Capacity Development, 1(1), 21–37. https://doi.org/10.66226/journalofcphrcd.v1i1.38
The financial consequences of human capital disclosure as part of integrated reporting. (2021). Journal of Intellectual Capital, 23(6), 1221–1245. https://doi.org/10.1108/JIC-03-2021-0079
Zulaikah, S., Larasati, D. A., & Harymawan, I. (2019). Government ownership, human resources disclosure, and firm performance: Evidence from the banking industry in Indonesia. International Journal of Innovation, Creativity and Change, 9(8), 238–264.