Title

An empirical analysis of the relationship between board size and committees, and narrative human capital disclosure

Document Type

Conference Paper

Publication Details

Abeysekera, I. (2010). An empirical analysis of the relationship between board size and committees, and narrative human capital disclosure. Finance and Corporate Governance Conference 2010 (pp. 1-42). Melbourne: SSRN.

Abstract

This study empirically investigates whether board size, non-executive directors on the remuneration committee, and non-executive directors on the audit committee affect narrative human capital disclosure (NAHCD) in firms where non-executive directors dominate the board composition. NAHCD are measured by their frequency of occurrence, using latent content analysis in the annual reports of the top 30 listed firms on the Colombo Stock Exchange from 1998 to 2006. Using the corporate governance attributes mentioned in the Code of Best Practice on Corporate Governance in Sri Lanka, it examines five attributes of corporate governance controlling for firm-level attributes. Findings reveal that the board size and the number of non-executive directors on the remuneration committee have a positive influence on NAHCD. Firm size is also positively associated with NAHCD. The findings provide a basis for the resource dependence perspective of firms' corporate governance for NAHCD. The findings highlight the importance of considering a firm's board composition and non-executive director involvement in the remuneration committee when determining NAHCD strategy.

RIS ID

35944

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