HUMAN CAPITAL DISCLOSURE IN MONGOLIAN JOINT-STOCK COMPANIES

Introduction: Human capital disclosure refers to the systematic communication of information related to an organization’s workforce–its knowledge, skills, experience, and contributions–to stakeholders. It serves as a tool for demonstrating how human resources impact organizational performance and sustainability. Although initial efforts in the 1970s introduced human resource accounting, interest resurged in the 1980s with support from institutions like the OECD and World Bank. Despite growing global emphasis on the importance of HCD, its implementation remains fragmented, especially in emerging economies like Mongolia. This study aims to evaluate the transparency and quality of human capital disclosures in Mongolian joint-stock companies. Methods: The study analyzed annual reports from 23 companies listed on the Mongolian Stock Exchange between 2017 and 2022 using both qualitative and quantitative content analysis. Human capital data were assessed based on 20 indicators (9 input and 11 output), following the Integrated Reporting Framework, ISO 30414, ESG standards, and IFRS guidelines. Each indicator was scored using a binary scale (0 or 1), and annual weighted averages were calculated. Companies were also categorized by sector and size according to national standards to evaluate disparities. Results: The analysis revealed that while 59.4% of firms reported employee headcount and 51.2% included demographic data, fewer than 10% disclosed key financial information such as compensation (0.7%) and recruitment costs (8%). Output metrics were similarly sparse: workplace accidents were reported by 16.5% of firms, productivity by 10.2%, and absenteeism by none (0%). Large companies were generally more transparent than SMEs, and financial sector firms outperformed non-financial ones in input disclosures. Among the most transparent companies were Gobi JSC (65% input, 39% output) and APU JSC (52% input, 24% output). Discussion: The findings suggest that human capital disclosure practices in Mongolia are underdeveloped and inconsistent. The absence of standardized reporting requirements, limited awareness, and lack of regulatory incentives contribute to these shortcomings. Although larger firms and financial institutions showed relatively better performance, overall transparency remains low, especially for output and financial indicators. To improve HCD, Mongolian firms should adopt globally recognized standards such as GRI or SASB and receive capacity-building support. Policymakers are encouraged to mandate core human capital metrics and provide guidance for effective implementation.