Investor Perspectives on Human Capital Disclosures: Australian Evidence

ABSTRACT

This study investigates how Australian institutional and retail investors perceive, assess and utilise human capital information. Surveys of 100 and interviews with 11 investors indicate high perceived relevance but limited reported integration of human capital information in decision‐making. Institutional investors emphasised qualitative assessment and engagement, while retail investors relied on reputational cues. Participants expressed dissatisfaction with current disclosures and sought standardised, detailed and comparable metrics. The study extends sustainability disclosure research by highlighting investor‐related barriers and the specific disclosure improvements they seek, with implications for standard setters, regulators and preparers aiming to improve the decision‐usefulness of human capital reporting.