Purpose - The purpose of this paper is to determine the quality of HR disclosure of companies listed in Qatari Exchange Market and identify factors that influence the level of this HR disclosure quality.
Design/methodology/approach - Content analysis of annual reports and sustainability reports of 12 companies from industrial and real estate sectors over the period 2013–2015 had been analyzed using the three-point scale (0-2, numerical disclosure 2, 1 for narrative form and 0 for not disclosed). This research employed also multiple regressions, in order to examine the impact of profitability and employee expenses on HR disclosure quality.
Findings - The results point out that HR disclosure quality level is very low among the sample companies. The ordinary least squares (OLS) regression analysis results indicate that the level of HR disclosure quality is associated with company’s employees expenses as a proportion of its total operating expenses, whereas profitability does not have a significant influence on its level of HR disclosure quality.
Research limitations/implications - The current study has two important limitations. First, the sample of the study consists of only 12 leading Qatari industrial and real estate sectors firms listed on the Qatar Stock Exchange Market. Second, the study used an unweighted index which implies equal importance of the selected information items.
Originality/value - The study has bridged the literature gaps by offering empirical evidence and new insights on the HR disclosure quality in Qatar and the factors that affect, which have not been examined before.
The discovery and extraction of oil in the Gulf states, including Qatar, has led these nations to adopt ambitious development plans, characterized by the magnitude of the general investment, mainly aimed to improve and expand the pillars of economic and social development process, such as building schools, hospitals, water supply, roads, and bridges, as well as projects for the provision of necessary infrastructure for the economic revival of the factories, the technological expertise, etc. The Gulf state of Qatar has seen a dramatic economic transformation over the last two decades, fueled largely by the growth of its oil and gas sector. The most visible sign of its transformation has been a massive increase in construction across the country. It is evident that these processes of construction initiated by Qatari government required extensive human resources. Hence, human resources and workforce have considerably increased from 54,000 in 1975 to 1.7m in 2013; of which, 90 percent of the State’s labor market were foreign migrant workers, mostly from India, Pakistan and Sri Lanka, the Philippines, Nepal and Bangladesh. Furthermore, the number is growing rapidly. Qatar may harbor nearly a million workers in the next ten years, in order to prepare the infrastructure and the construction of stadiums for the 2022 World Cup (Amnesty International Report, 2016; Human Rights Watch, 2015).