Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

The Determinants of Human Capital Voluntary Disclosures in the Lebanese Commercial Banks

Author(s): Dima Abdul hay, Nashwa Shaker Ragab, Wagdy Hegazy

Purpose: This paper aims to explore the voluntary Human Capital (HC) disclosures determinants in the annual reports of the Lebanese commercial banks. Methodology: 48 annual reports are examined in the study, representing a sample of 16 commercial Lebanese banks in the period of 2015-2017. The level of HC disclosure is specified through the content analysis of annual reports using 25-items HC index developed by the researcher that contain the most common indicators from previous studies and the most suitable for the banking sector. Furthermore, a regression analysis is conducted to identify the determinants of HC disclosure in the Lebanese commercial banks. The main determinant used in this research is: size, leverage, profitability, foreign ownership and bank’s age. Findings: The statistical and the regression results show that size, age and foreign ownership, explain the level of voluntary HC disclosures. In contrast, leverage and profitability are not considered as determinants of HC disclosure in the Lebanese commercial banks. Originality/value: The important contribution in this research is developing a new index in order to measure the level of HC disclosures that may be benefit in banks. This research is one of the newest researches that investigates and explores the determinants of IC in the banking sector of Lebanon. It would be useful for users of annual reports in the banking sector because it enables the Lebanese commercial banks to understand the importance and benefits of disclosing IC information. Keyword: Human Capital, Determinants, Disclosure, Lebanese Commercial Banks.