For many investors, the SEC’s November 2020 human capital disclosure requirement didn’t require enough. The rule allows companies to choose what workforce costs, wellness, diversity and retention details—among other human capital data—to share, providing substantial managerial discretion. Human capital has become a major financial performance predictor, especially amidst a tight labor market. On average, labor expenses make up 57% of operating costs at S&P 500 companies, according to MyLogIQ. High turnover rates can also indicate poor management or a lack of business agility. In competitive markets shareholders worry that companies might subvert workforce risks without stricter SEC regulations. But a new study by three Vanderbilt professors may allay these fears. It examines human capital disclosures over 20 years, finding most companies reveal risk in good faith and that prior SEC rule changes made a significant impact.