Determinants of human capital disclosure in the mining industry : comparative analysis of South African and Zimbabwean companies

Abstract

The mining sector plays a pivotal role in the economies of South Africa and Zimbabwe, yet limited attention has been given to the determinants of human capital disclosure within this industry. This study aims to address this gap by investigating the key factors influencing human capital reporting practices among the largest mining companies in these two countries. A quantitative approach was employed, utilising self-administered questionnaires to gather data from six major mining companies operating in both South Africa and Zimbabwe. Factor analysis was conducted to identify the primary determinants shaping human capital disclosure. The findings reveal that company structure, including audit committee characteristics, board size and composition, and assets, significantly influence disclosure practices. Performance-related factors, such as cost-effectiveness, return on training investments, liquidity, employee return on investments, and return on equity, also play a crucial role. Furthermore, market-related factors, including lobby pressure groups, media exposure, levels of debt, creditor pressure, and government regulations, were found to impact disclosure decisions. The results indicate that human capital disclosure mitigates information asymmetry, thereby strengthening relationships between company management and key stakeholders. It is also suggested that improved disclosure enhances corporate transparency, boosts investor confidence, and can positively influence a company’s perceived value. Given these findings, it is recommended that mining companies in South Africa and Zimbabwe adopt comprehensive reporting frameworks that incorporate human capital metrics. The adoption of such frameworks may align corporate practices with global reporting standards and enhance the sustainability and accountability of companies in the sector.