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Article
Publication date: 1 May 2006

Saverio Bozzolan, Philip O'Regan and Federica Ricceri

To explore the hypothesis that differences in intellectual capital disclosure (ICD) practices can be explained, if in part, by industrial sector (traditional; knowledge…

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1573

Abstract

Purpose

To explore the hypothesis that differences in intellectual capital disclosure (ICD) practices can be explained, if in part, by industrial sector (traditional; knowledge intensive) and nationality of origin (Italy; UK).

Design/methodology/approach

Content analysis of the annual reports of two reasonably matched samples of both high‐technology and traditional non‐financial firms in Italy and the UK. Univariate and multivariate analyses are then used to test the hypothesis proposed.

Findings

Size and industrial sector are found to be predictors of levels of ICD; the hypothesis relating nationality of origin to ICD is not supported.

Research limitations/implications

The main limitation relates to sample size due to the onerous nature of this form of research. Further research following this matched‐sample methodology should attempt to maximise sample sizes allowing for the incorporation of more specific nationally of origin factors.

Practical implications

Owing to the increasing importance of intangibles and intellectual capital, how these are reported is of interest to a large range of stakeholders. There is, as yet, no universally accepted form, or indeed regulation, of ICD.

Originality/value

The matched‐sample methodology on international ICD comparison expands on extant approaches.

Details

Journal of Human Resource Costing & Accounting, vol. 10 no. 2
Type: Research Article
ISSN: 1401-338X

Keywords

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Article
Publication date: 11 May 2015

Giovanna Michelon, Saverio Bozzolan and Sergio Beretta

The purpose of this paper is to investigate two research questions. Is internal control system (ICS) disclosure, as a monitoring mechanism, associated with the…

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3896

Abstract

Purpose

The purpose of this paper is to investigate two research questions. Is internal control system (ICS) disclosure, as a monitoring mechanism, associated with the characteristics of the board of directors, particularly the audit committee as the main board committee devoted to the effectiveness of ICS? Does the regulatory environment, particularly the regulation on ICS disclosure as an external governance/monitoring mechanism play a role in shaping the relationship between board monitoring and ICS disclosure and, if so, how?

Design/methodology/approach

The authors study the ICS disclosure of 149 companies listed in four European financial markets (London, Paris, Frankfurt and Milan), each with its own regulations about ICS disclosure, during a six-year period (2003-2008).

Findings

The findings support an inverse association between the extent of ICS disclosure and the proxies for board monitoring. The authors also find a statistically significant negative relationship between board monitoring and substantial ICS disclosure but no relationship between board monitoring and formal ICS disclosure. The evidence also shows that the regulatory environment moderates the relationship between board monitoring and ICS disclosure by introducing trade-offs among monitoring mechanisms.

Research limitations/implications

An important caveat of the research is that it does not explore if and how investors use ICS disclosure to evaluate the firm.

Practical implications

The authors propose a framework for the analysis of ICS disclosure that overcomes limitations of previous literature that has neglected the importance of the content beyond the extent of ICS disclosure. Through this framework researchers, practitioners and standard setters are able to separate merely descriptive, formal un-useful disclosure (boilerplate information) on the composing elements of the ICS from substantial disclosure regarding the functioning of the ICS (monitoring function).

Originality/value

The authors also provide evidence that the relationship between board monitoring and ICS disclosure varies with the content of the information communicated, thus offering guidance for future research not to focus on measuring the extent or quantity of disclosure but on the variety and complexity of the information communicated.

Details

Journal of Applied Accounting Research, vol. 16 no. 1
Type: Research Article
ISSN: 0967-5426

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Article
Publication date: 1 December 2003

Saverio Bozzolan, Francesco Favotto and Federica Ricceri

In recent years a world‐wide debate has emerged on the future of business reporting. There is growing agreement that traditional financial reporting is inadequate in…

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5122

Abstract

In recent years a world‐wide debate has emerged on the future of business reporting. There is growing agreement that traditional financial reporting is inadequate in meeting with the information needs of stakeholders, particularly in a knowledge economy characterised by a rapidly emerging emphasis on intellectual capital (IC). This study examines voluntary intellectual capital disclosure (ICD) provided by listed Italian companies in annual reports from the year 2001. The study aims to answer two research questions namely: what is the amount and content of ICD; and what are the factors that influence different voluntary reporting behaviours. In relation to amount and content of information disclosed, the results are consistent with previous ICD studies showing extensive disclosure of external capital (in particular about “customers”). Regarding the factors that can explain different voluntary reporting practices, findings suggest that industry and size are not important in determining the content of information disclosed, however, as found in social and environmental disclosure (SED) studies, these factors are relevant in explaining the amount of information disclosed. In summary, this paper highlights the ICD practices of Italian listed companies by examining their annual reports, and compares these results with a number of previous national studies.

Details

Journal of Intellectual Capital, vol. 4 no. 4
Type: Research Article
ISSN: 1469-1930

Keywords

Content available
Article
Publication date: 1 January 2008

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1213

Abstract

Details

Management Research News, vol. 31 no. 1
Type: Research Article
ISSN: 0140-9174

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