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Open Access
Article
Publication date: 31 August 2016

Mara Ridhuan Che Abdul Rahman

Intellectual capital (IC) is believed to be more important resources to add the value of a company rather than physical assets. This gives rise to the increasing practice of…

Abstract

Intellectual capital (IC) is believed to be more important resources to add the value of a company rather than physical assets. This gives rise to the increasing practice of reporting IC information in corporate annual report. Over the past fifteen years, considerable numbers of studies have employed content analysis to examine the extent and nature of IC information in several countries, but they presented different results. These results might partly contribute to different methods in counting information. In fact, the previous studies have been critised for not explicitly clarifying how information was recoded and counted which led to incomparable findings. Therefore, this paper firstly seeks to discuss an illustrative example of ‘sense-making‘ process in identifying, categorizing, and counting of IC information in annual reports of pilot sample company. Secondly, the method refined in the pilot study was applied over the final samples of six large companies in the UK from 1974 to 2008 The contribution of this paper is to primarily refine the previous method in recoding information, to send a message that transparency is crucial in content analysis and to facilitate method replication for future studies. Overall, this study demonstrates a marked increase in IC information disclosure was identified over the 35 years. The relational capital information disclosure was relatively more prominent over time, followed by human capital and structural capital.

Details

Asian Journal of Accounting Research, vol. 1 no. 2
Type: Research Article
ISSN: 2459-9700

Open Access
Article
Publication date: 14 December 2022

Kirti Aggarwal

The objective of the present study is to examine the impact of corporate characteristics on human resource disclosures in Indian corporate sector.

Abstract

Purpose

The objective of the present study is to examine the impact of corporate characteristics on human resource disclosures in Indian corporate sector.

Design/methodology/approach

The study investigates the annual reports of 336 Indian listed companies of NSE-500 Index. The data are collected for the latest time period which contains eight years (FY 2012–13 to 2019–2020). The data of independent variables (company characteristics) have collected from annual reports and CMIE ProwessIQ Database of the Indian listed companies. The data of human resource dissclosure index (HRDI) is collected form annual reports using content analysis approach. For analysis purpose, descriptive statistics, Pearson's correlation matrix, Two-way Least Square Dummy Variable (LSDV) regression model have been used.

Findings

The outcomes show that net sales, market capitalisation, ROTA, return on equity, quick ratio, PAR have significant positive and age, profit after tax, current ratio have significant negative effect on HRDI. On the contrary, debt-equity ratio, earnings per share, type of auditor, listing status have insignificant positive and net fixed assets, promoter's holding have insignificant negative effect on HR disclosures of the selected Indian listed companies.

Originality/value

The HRDI constructed in the present study helps the Institute of Chartered Accountants of India (ICAI) and other regulatory bodies to make some standards regarding voluntary HR disclosure practices in Indian corporate sector.

Details

Asian Journal of Economics and Banking, vol. 7 no. 3
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 16 December 2019

A.A. Ousama, Mashael Thaar Al-Mutairi and A.H. Fatima

The purpose of this paper is to investigate the relationship between the intellectual capital (IC) information reported in the annual reports and market value of the companies…

3337

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the intellectual capital (IC) information reported in the annual reports and market value of the companies listed on the Qatar Stock Exchange.

Design/methodology/approach

The study is based on a panel data collected from the annual reports and Bloomberg database for six years, specifically the periods 2010-2012 and 2016-2018. The total sample consists of 252 observations. The theoretical framework was developed in reference to the resource-based theory. The regression model is based on Ohlson’s model, which has been modified by including IC information.

Findings

The study found that there is a significant relationship between IC information and firm market value. This finding indicates that companies report their IC to help the stakeholders (e.g. shareholders, investors) to understand the real value of the company (which includes IC values).

Practical implications

The shift to a knowledge-based economy (KBE) has made knowledge a driver for economic growth, and it has become more important than capital, land and labour. This shift makes IC and resources vital for companies to create wealth, value and gain competitive advantage. The State of Qatar plans to transform its economy to a KBE in its “Qatar Vision 2030”. The findings of the study show that the companies have started to depend more on IC to contribute to transforming Qatar’s economy to a KBE.

Originality/value

This study could be considered a pioneer study to examine the association of IC disclosure and firm value in Qatar. Furthermore, prior literature has mixed findings, which justifies further investigation of IC’s effect on market value, particularly in the emerging economy of Qatar.

Details

Measuring Business Excellence, vol. 24 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Open Access
Article
Publication date: 27 April 2022

Fahmida Akhter, Mohammad Rokibul Hossain, Hamzah Elrehail, Shafique Ur Rehman and Bashar Almansour

The study seeks to evaluate the extent and quality of environmental reporting following a longitudinal analysis and covering a wide spectrum of industries in a single frame. The…

5593

Abstract

Purpose

The study seeks to evaluate the extent and quality of environmental reporting following a longitudinal analysis and covering a wide spectrum of industries in a single frame. The study also attempts to identify the set of most favored environmental reporting items by firms and items which are least disclosed. Furthermore, the study attempts to test whether certain corporate attributes such as firm size, age of the firm, leverage ratio, profitability, presence of independent directors in the board and gender diversity have any influencing power over environmental disclosure practices. The whole study has been carried out from legitimacy theory setting.

Design/methodology/approach

The study follows longitudinal analysis to identify the extent and quality of environmental disclosures. A self-constructed checklist of 12 environmental reporting items has been developed analyzing the annual report and content analysis method is followed to measure the extent and quality of environmental disclosures and identify environmental reporting items which are mostly disclosed and which are least disclosed. The study further uses panel data regression analysis to investigate whether certain corporate attributes have any impact on environmental disclosures using multiple linear regression. Total of 345 annual reports of listed financial and nonfinancial institutions have been observed in this study ranging from 2015 to 2019.

Findings

The key finding suggests that strict enforcement of Green Banking Rules 2011 fosters country’s commercial banks to invest more to protect the environment and commercial banks encourage nonfinancial institutions for environmental performance and related disclosures through finance. Therefore, almost 50% of sample firms disclose their environmental performance through reporting in either narrative, quantitative or monetary format which was only 2.23% in the last decade. Findings also reveal that tree plantation is the most reported environment disclosure followed by investment in renewable energy and green infrastructural projects and the least reported items are fund allocation for climatic changes and carbon management policy. Further analysis shows that firm size and leverage ratio both have positive impact on environmental reporting.

Research limitations/implications

An in-depth analysis may be conducted to identify why certain environmental items are least disclosed such as fund allotment for climatic changes, carbon management policy, etc. and how corporations may earn social appreciation and motivation by investing in those least preferred items in legitimacy theory setting. Future research may also take into consideration other corporate attributes which are not considered in the study.

Originality/value

The study conducted an in-depth analysis to understand the most favored form of environmental disclosures (narrative/quantitative/monetary) and their extent after incorporation of regulatory guidelines, which is the first of its kind in the research of environmental disclosures. The study indeed contributes to the documentation of environmental reporting in the context of a developing country where there is a lack of longitudinal analysis from the lens of legitimacy theory. Moreover, a wide spectrum of industries has been taken into consideration which facilitates the generalized findings on the environmental disclosure practices of corporations in Bangladesh.

研究目的

本研究擬評估公司報告環境方面的程度和質量, 以及對就環境報告披露而言、最受青睞和最不受歡迎的項目加以處理。研究亦擬測試企業屬性對實踐環境信息披露的影響。

研究方法

研究使用內容分析法、去測量環境信息披露的程度和質量。研究使用多元回歸分析、去探討企業屬性對環境信息披露的影響。研究涵蓋孟加拉國上市公司共345個年度報告, 涵蓋的年期為2015年至 2019年。

研究結果

研究結果似乎顯示綠色金融規則 - 2011 、成功鼓勵機構為保護環境而投放更多資源; 機構最樂於匯報的項目為植樹, 而披露最少的則為氣候變化和碳管理政策。進一步的研究分析顯示, 公司的規模和杠杆比率均會對環境匯報帶來正面的影響。

研究的原創性/新穎性

本研究豐富了關於發展中國家環境匯報的官方文件記錄, 而在這類國家, 透過合法化理論而進行的縱貫性分析研究頗為缺乏。本研究以深度分析法、去瞭解環境信息披露方面最受青睞的信息披露方式 (故事形式的敘述/定量形式/金融形式), 也去瞭解納入強制的規管指引後環境信息披露的程度; 就此而言, 本研究為這類環境信息披露研究的首個研究。

Details

European Journal of Management and Business Economics, vol. 32 no. 3
Type: Research Article
ISSN: 2444-8451

Keywords

Open Access
Article
Publication date: 6 October 2021

Berit Hartmann

The purpose of this study is to shed light on the tools, processes and negotiations involved in the formation of acceptable current values in the context of goodwill impairment…

2324

Abstract

Purpose

The purpose of this study is to shed light on the tools, processes and negotiations involved in the formation of acceptable current values in the context of goodwill impairment testing. The study raises the questions of how a current value for goodwill becomes a faithful representation and how one expectation about the future becomes more convincing than other expectations.

Design/methodology/approach

Drawing on the study of associations, the analysis presents a case study of a large, internationally active organisation. By combining field notes, interview transcripts and a variety of documents, the qualitative analysis focusses on strategies and mechanisms of persuasion.

Findings

The findings reveal how epistemological objectivity of current values forms in three moments of relational becoming that codify, depersonalise and proceduralise the valuation task. Further, the study suggests that a convincing argument forms with the help of four enablers: a bricolage of inscriptions, methodological mystification, transformed professional identities and a practical need for closure.

Originality/value

The study contributes with an analysis and illustration of financial accounting as practice, elaborating on the meaning and construction of faithful representation in cases of measurement uncertainty.

Details

Qualitative Research in Accounting & Management, vol. 19 no. 4
Type: Research Article
ISSN: 1176-6093

Keywords

Open Access
Article
Publication date: 6 December 2019

A.A. Ousama, Helmi Hammami and Mustafa Abdulkarim

The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation…

9112

Abstract

Purpose

The purpose of this study is to empirically investigate the impact of intellectual capital (IC) on the financial performance of Islamic banks operating in the Gulf Cooperation Council (GCC) countries.

Design/methodology/approach

The study measures IC by the value added intellectual coefficient model. A regression analysis was used to assess the impact of IC on financial performance. The research sample consisted of Islamic banks operating in the GCC countries during the years 2011, 2012 and 2013. Data originated from the annual reports of Islamic banks.

Findings

The results support the thesis that IC has a positive impact on the financial performance of Islamic banks. Even though the average IC is lower than that reported in other studies, the positive effect on financial performance is obvious. The findings also show that human capital (HC) is higher than capital employed (CE) and structural capital (SC). The study reveals that SC has an insignificant impact on the financial performance of the Islamic banks compared to CE and HC.

Practical implications

The findings provide empirical evidence that IC affects the Islamic banks’ financial performance. It helps Islamic banks in the GCC countries to understand how to use their IC efficiently, especially SC as it is yet to be used efficiently. Also, the findings benefit the relevant authorities (e.g. legislators and central banks) who could use them to emphasise strategic policy reforms whenever required.

Originality/value

The current research adds to the empirical studies in the GCC countries as it views the region as a collective as opposed to individual countries. It also extends the IC and performance measurement literature of Islamic banks in the GCC countries. Moreover, the current study enriches the limited literature on IC in the context of Islamic banking.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8394

Keywords

Open Access
Article
Publication date: 31 May 2022

Giuseppe Nicolò, Gianluca Zanellato, Adriana Tiron-Tudor and Paolo Tartaglia Polcini

This study aims to contribute to the existing literature by presenting new knowledge about sustainable development goals’ (SDGs) reporting practices through integrated reporting…

3128

Abstract

Purpose

This study aims to contribute to the existing literature by presenting new knowledge about sustainable development goals’ (SDGs) reporting practices through integrated reporting (IR). This paper’s ultimate goal is to dig to light companies’ main approaches to incorporating SDG disclosures into IRs.

Design/methodology/approach

This study puts forward both deductive content analysis and an inductive thematic analysis on a sample of worldwide leading IR adopters to assess what SDGs they disclose and how they integrate SDGs into the reports. Meaningful narratives and graphical illustrations are selected, categorised and discussed from a symbolic/substantive legitimacy perspective.

Findings

The results of this study highlighted that although a fair number of leading IR adopters addressed SDG issues, their pathways to disclosure were not uniform. In some cases, SDGs inspired substantive changes to internal management and process, communicated through an integrated approach. However, there was a persistent trend of using SDGs as camouflage and symbolic tool to enhance company’s reputation and obtain a licence to operate.

Originality/value

To the best of the authors’ knowledge, this was the first study that performed a deductive/inductive thematic analysis to engender insight into the most meaningful patterns followed by leading IR reporters worldwide to disclose their contributions to SDGs and address their legitimacy.

Open Access
Article
Publication date: 30 June 2021

Cemal Aktürk

Improving business processes provides companies with advantages in terms of efficiency and profitability, as well as competitiveness against other companies in the market…

1583

Abstract

Improving business processes provides companies with advantages in terms of efficiency and profitability, as well as competitiveness against other companies in the market. Companies that integrate business processes with enterprise resource planning (ERP) systems into digital platforms also have the opportunity to strengthen their weaknesses by recognizing disruptions and bottlenecks in inefficient business processes thanks to this digital transformation. Descriptive and bibliometric analyses were performed in this study for a systematic evaluation of studies on artificial intelligence (AI) in the ERP literature. The studies in which the keywords determined from the AI literature were firstly used together with ERP were investigated from the Scopus database. 837 publications meeting the search criteria were reached and a descriptive analysis of these publications was presented. Then, bibliometric analysis was performed using common author, common citation, and common keyword analysis methods for 296 publications in the article type. Tsinghua University and Obuda University have the most publications according to the results. The most commonly used AI keywords in the ERP studies were “genetic algorithm”, “fuzzy logic”, and “machine learning”. This study aims to guide future studies by providing a systematic and new perspective to researchers and experts working on ERP-AI.

Details

Journal of International Logistics and Trade, vol. 19 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 7 September 2020

Nicholas Asare, Margaret Momo Laryea, Joseph Mensah Onumah and Michael Effah Asamoah

This study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.

3121

Abstract

Purpose

This study examines the causal relationship between intellectual capital and asset quality of banks in Ghana.

Design/methodology/approach

Using annual data extracted from audited financial statements of 24 banks from 2006 to 2015, a ratio of non-performing loans to gross loans and advances is employed to estimate asset quality growths while the value-added intellectual coefficient by Pulic (2008, 2004) measures intellectual capital. The panel-corrected standard errors estimation technique is used to estimate panel regressions with asset quality as the dependent variable.

Findings

Asset quality of banks in Ghana is generally not affected by intellectual capital. However, when intellectual capital is divided into its components, the study indicates that there are significant positive relationships between asset quality and two components of intellectual capital. Thus, structural capital and human capital efficiencies positively affect the asset quality of banks.

Practical implications

The findings of the study implore managements of banks to increase structural and human capital investments and efficiencies to improve asset quality. Furthermore, the results have direct implications on developments in financial markets in emerging economies.

Originality/value

The study analyses the link between typical intellectual capital and asset quality of banks which is yet to be empirically examined in an emerging banking market.

Details

Asian Journal of Accounting Research, vol. 6 no. 1
Type: Research Article
ISSN: 2443-4175

Keywords

Open Access
Article
Publication date: 11 May 2023

Md. Tofael Hossain Majumder, Israt Jahan Ruma and Aklima Akter

This paper attempts to evaluate the impact of intellectual capital on bank performance in Bangladesh.

1158

Abstract

Purpose

This paper attempts to evaluate the impact of intellectual capital on bank performance in Bangladesh.

Design/methodology/approach

The authors analyze an unbalanced longitudinal data of 32 banks, which cover 318 observations of bank-year from 2010 to 2019. The study employs a dynamic panel model with the two-step system generalized methods of moments (SGMM).

Findings

The results show that bank performance is significantly positively affected by the intellectual capital (IC) in Bangladesh. In addition, the findings show that capital employed efficiency (CEE) is an essential determinant of bank performance rather than structural capital efficiency (SCE) and human capital efficiency (HCE) for the Bangladeshi banking sector.

Originality/value

This work is unique as no one has explored the impact of intellectual capital on Bangladesh's bank performance. The findings suggest that business owners, managers and policymakers who want to improve the efficiency of their organizations should spend continuously on IC and expand their investment into CEE, which includes both financial and physical resources, in order to obtain better bank performance.

Details

LBS Journal of Management & Research, vol. 21 no. 2
Type: Research Article
ISSN: 0972-8031

Keywords

1 – 10 of over 5000