Effect of Human Resource Accounting Disclosure on Financial Performance of the Firms: An Empirical Evidence of KSE 100

Aitesam Ullah; Nisar  Khan; Yasir Alam

doi:10.62270/jirms.vi.17

Authors

Aitesam Ullah Institute of Management Sciences, Peshawar
Nisar Khan Iqra National University, Peshawar Campus
Yasir Alam Iqra National University, Peshawar Campus

DOI:

https://doi.org/10.62270/jirms.vi.17

Keywords:

Human Resource Accounting Disclosure Index, Financial Performance, Foreign Ownership, Return on Assets, Firm Size

Abstract

The study investigates the impact of human resource accounting (HRA) disclosures on the financial performance of KSE-100 firms. For this purpose, we use Static panel data Models, i.e., Fixed Effect Model and Random effect model, to analyze the behavior of financial performance based on the level of human resource accounting disclosures using a sample of 96 companies listed on KSE 100 Pakistan Stock Exchange from the years 2015-2020. We used return on assets as our dependent variable and developed an index based on the past literature for the independent variable. Firm Size, Financial leverage, and Foreign Ownership were used as control variables and the independent variable. Results show a significant positive relationship of human resource accounting disclosures on the firm's financial performance. The relation between firm size and financial performance is significantly positive, and there is little relation between financial leverage and foreign ownership with financial performance.

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