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The purpose of this paper is to respond to the increasing pressure on financial markets to more systematically value the intangible assets in listed firms.

Using qualitative research techniques on the trading floor of Merrill Lynch Investment Bank in Sydney and Hong Kong, four tools for human capital analysis have been developed by the authors.

These tools provide mechanisms for securities analysts to more systematically analyse the intangible aspects of publicly listed firms on global stock exchanges.

Given the complex regulatory requirements on securities analysts in many developed economies, these tools are predicated on analysts using publicly available information.

Specifically, the tools use a systems approach and can assist securities analysts to be more systematic in their analysis of management quality of publicly listed companies, as it is manifested in a firm's management systems.

The purpose of this paper is to identify the challenges in adding a critical realist epistemological perspective to a positivist approach in research on listed companies by equity researchers and other financial services professionals.

A purposive sample of publicly available equity research reports was examined to assess the dominant epistemological approach to investment analysis.

It was found that there is an absence of a critical realist epistemological approach to investment analysis, confirming the dominance of a positivist approach to obtaining and analysing investment information.

This research drew on a small, purposive sample, and could be followed by more wide‐scale research. Taking a critical realist approach may create a clash of “institutional logics” which will need to be considered by a range of stakeholders.

Equity research reports are examined through the lens of critical realism. This exploration allows for an additional epistemological perspective on analysis of firm value.

Purpose – Institutional investors need to move beyond first- and second-generation interpretations of Corporate Social Responsibility (CSR) and Socially Responsible Investment (SRI) (based on negative filters), and also beyond third and fourth generations (based on positive and integrated filters), which are more sophisticated but still limited, and toward a fifth generation of SRI and CSR. A fifth-generation model systematically incorporates critical intangibles, such as human capital analysis, into the Environmental, Social, and Governance (ESG) investment process.

Methodology – This chapter incorporates a literature review and draws on a range of qualitative research and case studies on the current and potential role of regulators to regulate nontraditional measures of value.

Findings – The power of institutional investors is currently based on incomplete information from listed companies on how they create value, yet it rests on superior knowledge and insight into the workings of the companies in which they invest, and is only as strong as the quality of the information it uses to make investment decisions on behalf of clients.

Research implications – More research on the role of human capital analysis, and its regulatory consequences, is required.

Practical implications – Regulators need to act within the context of these fifth-generation models in order to create the environment for more transparent investment recommendations.

Originality of chapter – This chapter contributes a qualitative and conceptual perspective to the debate on the role of regulation beyond the global financial crisis.

How can organisations and their key stakeholders, including the financial markets, benefit from the increased understanding of the role of intangibles in value creation in listed firms? One response is to challenge the finance industry to create innovative investment products based on analysis of intangibles, including human capital (HC), which can act as a lead indicator of future financial performance. This may require qualitative research specialist expertise in finance houses. The purpose of this paper is to address these issues.

The paper uses qualitative data from the trading floor of Merrill Lynch in Sydney and Hong Kong, drawing on participatory action research, by the first author. It also draws on field research interview data with biotechnology executives, using a case study approach, by the second author.

The findings suggest that finance industry may need to move beyond the use of indices and ethical investment screens to more clearly understand the role of intangibles, such as HC, in value creation.

This paper described the evolution of a set of HC analysis models, and applies them to the biotechnology industry. The results indicate that more qualitative information on listed companies can be analysed and interpreted to make the investment process more transparent to all stakeholders, including securities analysts. This may influence other researchers to extend these approaches to improve the quality of intangibles analysis.

Purpose – This chapter introduces this book’s topics, purpose, and key themes. It summarizes the purpose of the book which is to explore through both descriptive and conceptual means the use of power by institutional investors in bringing about changes to corporate behavior, so that corporations engage in improved environmental, social, and governance actions.

Methodology/approach – This chapter reviews literature and chapters and offers conceptual development.

Findings – The forces driving the actions of institutional investors are different from many other shareholders being determined by a unique set of costs, benefits, and objectives. As such three general categories of institutional elements constrain and guide this behavior: regulative elements which include constitutions, laws, and property rights; normative elements which include informal norms, values, and codes of conduct; and cultural-cognitive elements which include shared beliefs, identities, and mental models. It highlights the role of regulation and “soft” law, the impact of values and customs, and the way sense-making and cognition impacts on decisions and actions.

Practical/social implications – The chapter highlights the interplay between hard and soft law in progressing the agenda. It seems that hard law is a hygiene factor forming the base on which initial gains can be made in the application of institutional shareholder power. Moreover, the use of soft law such as the Global Reporting Initiative and the newly founded Sustainability Accounting Standards Board, institutional investors can gain improved disclosure of sustainability performance to incorporate into their investment decisions. Moreover, it highlights the gaps in the use of the power that exists. The movement is still emerging with the focus on corporate governance and environmental considerations primarily. There are still improvements to be made for institutional investors in the social aspects of the responsibility agenda as well in pushing companies to be more transparent, improve reporting, and engage in more long-term decision-making.

Originality/value – The chapter contributes to the debate on governance convergence between liberal market economies (LMEs) and coordinated market economies (CMEs). It is important to look beyond national characteristics alone and demonstrate that organizations, even though they are impacted by institutions, are not necessarily passive acceptors of their fate. Hence this chapter highlights that in expanding from a dyadic approach comparing LMEs and CMEs, the strategic choice of decision-makers, the power of the actors, and the processes used by institutional investors in changing corporate behavior are important considerations.

Purpose – The purpose of this work is to explore ways in which parents of children with disabilities actively seek to create a place for themselves and their children within supportive communities of others – despite structural and attitudinal barriers.

Methodology – Semi-structured, interactive interviews were conducted with six mothers and six fathers of older teens and young adults with severe impairments. Interview transcripts were analyzed for themes related to barriers to social participation and strategies used to create and sustain communities of supportive others.

Findings – Results suggest that, while there are indeed many barriers to social participation, these mothers and fathers have successfully utilized a variety of strategies in order to create a sense of community for themselves and their children including: garnering support from family; creating enclaves of “wise” individuals; and active social networking. Findings also suggest that children with disabilities can provide opportunities for parental community involvement in unexpected ways.

Limitations, implications and value – The sample is small and selective and the study used retrospective interviews to examine parental memories. Despite these limitations, the narratives of these parents provide a provocative look at the potential role of personal agency in the community experiences of parents of children with disabilities. The stories told by these parents clearly suggest that it takes concerted effort to construct a village in the face of significant barriers to social participation. Once created, however, that village of supportive others can provide life enhancing support for children with disabilities and their families.