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This paper introduces a framework for analysing intellectual capital statements. It is suggested that the three‐way model of intellectual capital (human, organisations and structural) can be developed in its descriptive and its prescriptive qualities. Another model is offered which relate intellectual capital indicators to the firm’s knowledge strategy. This IC accounting system describes the transactions that allow the firm’s knowledge strategy to be implemented and it prescribes an agenda from which it is possible to monitor the effects around intellectual resources, to qualify and upgrade them and to survey the portfolio of intellectual resources. An example of Systematic Software Engineering’s two intellectual capital statements from 1999 and 2000 is used to illustrate how intellectual capital statements may be read from this perspective.

Purpose – The purpose of this paper is to propose and illustrate the use of a set of rules to make an analytical reading of the indicators of an intellectual capital statement possible. Design/methodology/approach – The paper proposes a model to analyze intellectual capital statements and applies this model to an intellectual capital statement and an IPO prospectus, as these two reporting forms are suggested to be similar. Thus, they are analyzed using the same methodology. Findings – The paper demonstrates that it is possible to analyze prospectuses and intellectual capital statements systematically and even to compare companies on that basis. Since IPOs are often already part of the capital market's information, the similarities between reading IPOs and intellectual capital statement suggest that intellectual capital statements convey company‐specific information relevant for financial analysts. Practical implications – The paper presents an analytical model which can be used generally in the analysis of the intellectual capital statement and IPO prospectuses. Originality/value – The paper demonstrates the similarities between an intellectual capital report and an IPO prospectus. Further, the paper demonstrates the use of a theoretically anchored and practical, useful model for analysing disclosure in the narrative part of a financial report.

The purpose of this paper is to show how three similar utility companies have adopted intellectual capital statements as a management technology, incorporated it into existing practices, developed and adapted it.

The paper is based on ethnomethodology using accounts where the data collection was mainly through semi‐structured interviews with practitioners. The analysis is based on the actor network theory where the idea of an intellectual capital statement is enacted and materialised.

The paper finds that the local context and the local actors have a decisive influence on the network creation taking place around the intellectual capital statement as an object, where the objects create room for different actions. It is concluded that the intellectual capital statement in the companies functions as a conceptual framework where existing initiatives can be integrated into a whole. Further, it is concluded that an actor with a strong position is necessary in order for the intellectual capital statement to be part of the management practice.

Previous studies of intellectual capital reporting have been based on surveys or studies of the written reports and how they at a specific point in time were used in companies. This study is based on the researchers being present in the companies while the intellectual capital statements are developed, and on following the companies for three to four years. Thus, the focus is on the construction of the statements. Further, the methodology opens up new ways of understanding intellectual capital statements.

The present study aims to investigate the relationship between intellectual capital and the readability of financial statements with the mediating role of management characteristics of companies listed on the Tehran Stock Exchange. In other words, this research tries to find the answer to whether intellectual capital can positively affect the readability of financial statements.

A multivariate regression model was used to test the hypotheses for this purpose. The research hypotheses were tested using a sample of 1,309 observations listed on the Tehran Stock Exchange from 2012 to 2018 and a multiple regression model based on panel data and fixed-effects models.

The results indicate that intellectual capital has a positive and significant relationship with the readability of financial statements, which means that with increasing intellectual capital in companies, financial statements’ readability also increases. Based on the hypothesis test results, it has been determined that narcissism, accrual and real earnings management have a negative effect on the relationship between intellectual capital and the readability of financial statements.

Since the present study examines such an issue in emerging markets, it provides users, analysts and legal entities with useful information about management’s inherent and acquired characteristics that significantly impact the purchase of audit opinion. This study’s results also contribute to developing science and knowledge in this field and close the literature gap.

On the basis of empirical illustrations from five Danish firms this paper discusses how the objects of intellectual capital statements were constructed. These objects were the activities that defined knowledge management, and the intellectual capital statements monitored these through depicting a particular narrativised strategy for managing knowledge – called a knowledge narrative – and through a monitoring system that reflected the activities set in motion to mobilise the strategy for managing knowledge. Particularly, the paper discusses the idea of knowledge as a narrative. It is suggested that for knowledge to count, it has to be able to produce something. This something is found the value‐to‐the‐user of the products and services.

Measurement of intellectual capital is important, but not only for descriptive purposes. It is important because it enables intervention. If intervention and measurement are coupled, then measurement is an input rather than an output, and then measurement is not to be evaluated on its reflection of reality but rather on its ability to help actors transform their reality. This is particularly true for intellectual capital, which is widely accepted as part of an agenda for transformation and growth – it is a strategic/political agenda. To arrive at this conclusion, the paper discusses relationships between measurement and intervention comparing conventional financial statements with intellectual capital statements.

This study aims to assess the relationship between intellectual and social capital and financial statement fraud and money laundering of Iraqi firms before and after the emergence of the Islamic State of Iraq and Syria (ISIS). In other words, this paper seeks to answer the question of “whether the intellectual and social capital can contribute favourably to fraud in financial statements and money laundering or not.”

For the study, the multivariate regression model is used for hypothesis testing. Research hypotheses have also been examined using a sample of 35 listed firms on the Iraqi Stock Exchange during 2012–2018, using the panel data technique-based multivariate regression pattern and fixed-effect model.

The results show a negative and significant relationship between social capital and intellectual capital, fraud in financial statements and money laundering. Besides, the results indicate a positive and significant effect of the interactive variable of ISIS on the relationship between social and intellectual capital and fraud in financial statements and money laundering.

Since this paper is the first study on such a topic in the emergent markets, it provides helpful information for the users, analysts and legal institutions about intellectual capital and social capital that contributes significantly to fraud and money laundering of business units. Moreover, the study results help the development of science and knowledge in this field and fill the existing gap in the literature.

The purpose of this paper is to study the influences of corporate governance on intellectual capital disclosures in chief executive officers’ (CEOs’) statements in annual reports.

Index score, word count and overall tone of CEOs’ intellectual capital disclosures are calculated to represent the extent, amount and tone of these disclosures, respectively. With a sample of 78 FTSE 100 companies, this paper uses content analysis and empirical analysis to examine the impacts of board size, board composition and shares concentration on the above three measures of CEOs’ intellectual capital disclosures, controlling for company size, profitability and leverage ratio.

Empirical results demonstrate a significant positive relationship between board composition and the extent, amount and tone of CEOs’ intellectual capital disclosures and a significant negative relationship between shares concentration and the amount of these disclosures.

This paper focuses on the impacts of corporate governance on CEOs’ intellectual capital disclosures. It also groundbreakingly measures the tone of CEOs’ disclosures.

The paper reports on public sector organisations'/institutions' work to develop knowledge management and intellectual capital statements. Building on experiences collected during 2001‐2002 where 26 public sector institutions in Denmark sought to develop intellectual capital statements, this paper discusses their experiences and in particular, it addresses the role of intellectual capital in relation to the development of the new public management philosophy. It is suggested that these public sector organisations use intellectual capital activity to promote themselves as “businesses” with their own strategies and modes of operations. Intellectual capital helps these firms differentiate themselves and develop their own strategic approach to their mode of functioning by showing how they function as enterprises.

The purpose of this paper is to document the relationship between intellectual capital disclosure and analyst following for biotechnology firms listed on the Copenhagen Stock Exchange between 2001 and 2010.

Intellectual capital disclosure was computed from financial statements applying the disclosure index of Bukh et al. (2005), while analyst following data were retrieved from the Institutional Brokers’ Estimate System (I/B/E/S).

The results show that analysts are more likely to follow firms with high intellectual capital disclosure. This finding suggests that analysts wish to follow those firms for which they have more information. The results also show that the most important intellectual capital disclosures for analysts are those related to employees and strategic statements. This paper therefore expands on previous results by raising awareness of which information companies should disclose to the capital market in order to improve analyst following, in turn helping to improve the general disclosure environment.

More relevant methods, such as surveys or interviews with management, could be used to improve the information content of intellectual capital disclosure. Analysts probably deduce the intellectual capital of a firm from interaction with management rather than financial statements.

Firms in and beyond the biotechnology sector can improve their information environment by disclosing more information on intellectual capital in relation to employees and strategic statements in their financial statements.

The findings shed light on the importance of understanding intellectual capital in the biotechnology sector for analysts and investors who wish to value such firms.