External workforce disclosure practices: evidence from the UK and Germany

Purpose This study aims to investigate the extent and determinants of external workforce disclosure in the UK and Germany. Design/methodology/approach An explanatory study uses the deductive research approach. Secondary data on external workforce disclosure is from the annual financial reports of listed firms during 2023. At the same time, data on corporate governance mechanisms and other control variables are from the DataStream database. This paper uses the general linear regression model with fixed effects to test the study hypotheses. Findings There are low levels of external workforce disclosure in corporate annual reports in the UK and Germany. German companies significantly provide more quantity and quality of external workforce disclosure than the UK. Stakeholders’ power and corporate strategic posture are vital determinants of external workforce disclosure quantity and quality. Practical implications This paper improves the understanding of corporate external workforce disclosure’s internal and external mechanisms and guides appropriate sustainability policies to corporate managers, regulators and policymakers. Originality/value This paper adds to the literature on the degree of external workforce disclosure in two developed countries, the UK and Germany. In addition, it highlights the most critical determinants of external workforce disclosure.