Role of remuneration committee in narrative human capital disclosure

This study empirically investigates whether independent directors on the remuneration committee influence narrative human capital disclosure (NAHCD) in firms where independent directors dominate the board composition. NAHCD is measured by 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. This study examines two attributes of corporate governance, controlling for other corporate governance attributes and firm‐level attributes. The findings highlight the importance of considering a firm’s independent director involvement in the remuneration committee when determining NAHCD strategy.