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The purpose of this paper is to examine whether information on intellectual capital (IC) is value relevant for investors and the role played by the single components of IC (human capital, organizational capital, relational capital) in creating firm value.

The 1995 Ohlson model has been employed to investigate the relationship between the current accounting measures (book value and earnings) and future measures of profitability, proxied by IC. The Value Added Intellectual Coefficient (VAIC™) approach is used to determine the firm's efficiency in using IC resources. The sample analysis analyzed is constituted of financial sector companies listed on the Italian Stock Exchange for the period 2006‐2008.

The findings fully confirm the existence of a positive relationship between accounting values and market value on the one hand and IC components as measured by VAIC™ and market value on the other. Results show that investors attach more value relevance to human capital efficiency (HCE) than to structural capital efficiency (SCE) and that HCE plays an indirect role in the relation between IC and market value.

The paper is focused on one sector (financial) and one country (Italy). The focus on the entire financial sector allows the authors to validate results from an Italian perspective and to extend them for similar banking structures in other countries, and to favor comparisons with other similar studies.

The main implications for financial company managers are that, when developing a strategy aimed at strengthening IC, they should consider that human capital plays an indirect part with regard to the other components and that each investment in one of the IC subcategories should not be evaluated in isolation but in relation to its interactions.

The paper realizes a fusion between value relevance and IC literature. To the best of the authors' knowledge, this is the first paper that examines the relationship between VAIC™ and the market value of the Italian financial sector, using an Ohlson model modified to include IC information, comprehensive of the human capital indirect effect.

Within the accounting discipline and its literature, attention to the role of social and non-profit organizations has been growing, particularly with respect to issues of accountability and social accounting. In response, the aim of this introductory article is to present the background for the book by highlighting (i) the relevance and rise of the non-profit sector worldwide, (ii) the limitations of the conventional accounting framework when applied/transposed to NPOs and (iii) the ‘social accounting project’ for NPOs. The article presents analysis and critique based on a literature review of the accountability framework for NPOs. After presenting key worldwide statistics regarding the growing non-profit sector, the article points out the skepticism regarding the adoption of traditional accounting principles and frameworks for NPOs. The article offers both an examination of how to improve the accounting system for NPOs and a discussion of the benefits emerging from the social and environmental accounting and reporting models. ‘The social accounting project’ for NPOs is presented as a pathway towards these innovative practices increasing organizational transparency. This article and the book overall provide new contributions to the research literature, fostering synergies among financial accounting and social accounting scholars engaging with the NPO subject area. Moreover it brings together studies from a range of disciplines, such as financial accounting, social accounting, economics, management, and third-sector studies. This cross-disciplinary approach offers a major contribution to our developing knowledge in this field.