FINANCIAL DISCLOSURE PRACTICES IN INDIA’S IT INDUSTRY: A COMPARATIVE COMPANY-LEVEL ANALYSIS

Abstract

The present study examines the nature and extent of financial disclosure practices among selected Indian Information Technology companies with a specific focus on three key dimensions: brand valuation, employee welfare measures, and inflation accounting. The study is descriptive and analytical in nature and is based on secondary data collected from the annual reports of selected IT companies for a period of five financial years from 2020–21 to 2024–25. To assess disclosure practices, a disclosure index approach was adopted, wherein the presence of relevant disclosure was assigned a value of one and the absence was denoted by a dash. Descriptive statistics were used to understand the average level of disclosure across different categories, while single-factor Analysis of Variance (ANOVA) was applied to examine whether significant differences exist among the selected disclosure dimensions. The findings of the study reveal that the selected IT companies have increasingly emphasized financial disclosures in recent years, particularly in areas related to brand valuation and employee welfare measures. Inflation accounting disclosures, though relatively less common in earlier years, show a rising trend in the later period of the study. The ANOVA results indicate that there is no statistically significant difference in the mean disclosure levels among the three disclosure categories, suggesting a balanced and uniform approach to financial disclosure practices across companies.