scholarly journals Moving from irrelevant intellectual capital (IC) reporting to value-relevant IC disclosures

2017 ◽  
Vol 18 (1) ◽  
pp. 81-101 ◽  
Author(s):  
Stefan Schaper ◽  
Christian Nielsen ◽  
Robin Roslender
Keyword(s):  
Intellectual Capital ◽  
Structured Interview ◽  
Original Structure ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Reporting Standard ◽  
Content Type ◽  
Corporate Social ◽  
Use Of Internet ◽  
Corporate Social Responsibility Reports

Purpose Informed by the findings of a follow-up research study of companies originally involved in the Danish Guideline Project (DGP) for intellectual capital statements (ICS), the purpose of this paper is to provide valuable insights for a potential shift from intellectual capital (IC) reporting, largely informed by an accounting perspective, towards IC-related disclosures. Design/methodology/approach The paper draws on data obtained from 21 semi-structured interviews with respondents in 16 companies. The respondents were contacted following a genealogical exercise carried out on the 102 companies involved in the DGP between 1999 and 2003. Findings The interviews suggested a rather critical perspective towards IC reporting using the ICS framework. Despite the attempt of the DGP to establish a reporting standard, a range of experiments resulted in changes to the framework’s original structure. Overall, a trend towards more integrated forms of reporting was discernible, in some part being motivated by the need to reduce the levels of reporting overload. Examples of integration designed to legitimise IC or corporate social responsibility reports, involving issuing them in tandem with a recognised reporting vehicle such as the annual report, were also encountered. Research limitations/implications The implications of this study are that timely, value-relevant IC disclosures and compliant reporting, primarily for accountability purposes, have the potential to coexist. In addition to the usual limitations of a semi-structured interview research design, respondents’ difficulties in clearly recalling events during the project after some 10-12 years is a further potential limitation. Additionally, the use of internet-based communication channels for disclosure purposes was in its infancy at the time of the DGP. Originality/value The paper provides important insights into the mechanisms of IC disclosure and IC reporting as seen from a practitioner perspective. Implications relevant to the continued development of integrated reporting are also identified.

The role of controlling shareholders in determining investments of intellectual capital among Taiwanese semiconductor companies

2019 ◽  
Vol 21 (1) ◽  
pp. 62-86 ◽  
Author(s):  
Chin-Hsien Hsieh ◽  
Irene Wei Kiong Ting ◽  
Jawad Asif ◽  
Hanh Thi My Le
Keyword(s):  
Intellectual Capital ◽  
Negative Relationship ◽  
Value Added ◽  
Integrated Reporting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Optimal Point ◽  
Content Type ◽  
Controlling Shareholders

Purpose Although intellectual capital (IC) has been proven to be value-added for companies, the drivers of IC performance remain an under-researched area. From the perspective of corporate governance, the purpose of this paper is to examine how controlling the ownership of shareholders would influence IC performance. Design/methodology/approach This study utilized value-added intellectual capital (VAICTM) and its subcomponents, namely human capital, structural capital and capital employed efficiencies, to proxy for IC performance and regression analyses to assess the association between controlling the ownership of shareholders and the IC performance of Taiwanese listed semiconductor firms for the years 2009–2017. Findings Results show that controlling the ownership of shareholders is nonlinearly related to IC performance. Specifically, controlling their ownership positively affects the level of IC performance up to an optimal point before it turns to be a negative relationship thereafter. Practical implications The results of this study can help policy makers and other stakeholders understand the role of controlling shareholders in determining IC performance. The findings of this study suggest a nonlinear relationship between controlling the ownership of shareholders and IC. Originality/value This study provides an extended perspective in studies related to the determinants of IC by considering the resources provided by controlling shareholders. The definitions of controlling interests and IC applied in this study are compared and aligned with those found in the International Financial Reporting Standard 10 – Consolidated Financial Statements and the International Integrated Reporting Council, respectively.

Internal auditing and assurance of corporate social responsibility reports and disclosures: perspectives of some internal auditors in Ghana

2016 ◽  
Vol 12 (4) ◽  
pp. 706-718 ◽  
Author(s):  
Samuel Nana Yaw Simpson ◽  
Francis Aboagye-Otchere ◽  
Ruby Lovi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Internal Audit ◽  
Structured Interview ◽  
Research Approach ◽  
Limited Information ◽  
Content Type ◽  
Internal Auditors ◽  
Changing Roles ◽  
Corporate Social

Purpose This study aims to examine the nature and extent of internal auditors’ (IAs) involvement in corporate social responsibility (CSR) assurance. It also ascertains the capacity building requirements to legitimise the role of IAs as a credible form of providing CSR assurance. Design/methodology/approach A qualitative research approach was adopted, where data were collected through semi-structured interview of IAs of companies in Ghana that produce CSR reports. Findings Findings suggest that companies appreciate the fact that the internal audit function could provide independent assurance on CSR reports. However, there is limited information on the nature and scope of the assurance procedures. Moreover, most IAs seem to lack the requisite knowledge and skills needed to effectively carry out CSR assurance engagements. These evidences suggest a relatively low level of reliance being placed on CSR assurance services provided internally. Research limitations/implications Findings are purely based on the perceptions of IAs. Future studies may include the views of those who appoint IAs (i.e. management). Practical implications Findings engender discussions on the need for IAs and regulators of IAs (e.g. the Institute of Internal Auditors), particularly those in developing countries to begin to conscientise practitioners on the changing roles of the IA in the areas of CSR and CSR assurance. Originality/value This study is one of the very few studies on CSR assurance from the perspective of IAs and it also based on evidence from an African context. Also, the study provides evidence on the need for a deliberate effort to equip internal audit practitioners to provide at least some minimal assurance on CSR disclosures and reports.

Ethics, corporate social responsibility and the role of human resource development: the academic experts’ view

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amin Alizadeh ◽  
Deepu Kurian ◽  
Shaoping Qiu ◽  
Khalil M. Dirani
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Human Resource Development ◽  
Human Resource ◽  
Sampling Technique ◽  
Resource Development ◽  
Structured Interview ◽  
Academic Programs ◽  
Content Type ◽  
Corporate Social

Purpose The purpose of this study is to get the perspectives of human resource development (HRD) scholars about connections among HRD, corporate social responsibility sand ethics. The authors also sought to discover if HRD academic programs need to have ethics-related courses for their graduate students. Design/methodology/approach In this paper, the authors reviewed the literature and interviewed ten HRD scholars who substantially contributed to the field of HRD and have influential publications related to ethics or corporate social responsibility to find out the relationship between HRD, ethics and corporate social responsibility. A semi-structured interview method was adopted to collect data and purposeful sampling technique was used for analyzing data into identified themes. Findings The results from the interviews were categorized into seven different themes. While some scholars argued that ethics-related discussion needs to be integrated within every course, most scholars stated that ethics can be a required standalone course for HRD graduate programs. Originality/value Despite ongoing consideration of the ethical nature of HRD, little research has been conducted on how ethics and corporate social responsibility are represented in the field of study and practice. To the best of the authors’ knowledge, this study is the first empirical paper in HRD that collected and analyzed experts’ perspectives in this topic.

The impact of the integrated reporting framework on corporate social responsibility (CSR) disclosures – the case of South African mining companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Barry Ackers ◽  
Susanna Elizabeth Grobbelaar
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
South African ◽  
Mining Industry ◽  
Integrated Reporting ◽  
Content Type ◽  
Stakeholder Orientation ◽  
Mining Companies ◽  
Corporate Social ◽  
The Impact

Purpose Despite initially being lauded as a revolutionary approach for companies to account to all stakeholders, the shareholder orientation of the international integrated reporting (<IR>) framework gave rise to questions about whether integrated reports would still sufficiently disclose pertinent corporate social responsibility (CSR) information. This paper aims to investigate the extent to which the <IR> framework has impacted the CSR disclosures contained in integrated reports of South African mining companies. Design/methodology/approach The study deployed a mixed methods research approach, involving thematic content analysis of the CSR disclosures contained in the integrated reports of mining companies with primary listings on the Johannesburg Stock Exchange. The resultant qualitative data were subsequently analysed using a T-test of difference. Findings The study observes that the release of the <IR> framework appears to have had a limited impact on the CSR disclosures in the integrated reports of most companies included in the study. However, where significant differences were identified, the CSR disclosures of some companies were positively impacted after the release of the <IR> framework, whilst others were negatively impacted. Research limitations/implications As South Africa is acknowledged as a leader in the global <IR> movement, the paper’s observations have global relevance and suggest that the fundamental principles of <IR> should be reconsidered to improve the alignment with stakeholders’ information needs, as originally conceived. Originality/value Despite the shareholder orientation of the <IR> framework, the global mining industry is acknowledged as being at the forefront of implementing CSR interventions to mitigate the adverse impacts of their operations on stakeholders, supporting a stakeholder orientation. As the adoption of <IR> continues to gain traction around the world, this paper’s contribution is that it represents one of the few papers to use the global reporting initiative G4 indicators to specifically examine the impact of <IR> framework on the CSR disclosures on the South African mining industry, where both <IR> and CSR reporting are quasi-mandatory disclosure requirements.

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jamel Chouaibi ◽  
Saida Boulhouchet ◽  
Raghad Almallah ◽  
Yamina Chouaibi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Moderating Effect ◽  
Integrated Reporting ◽  
Board Diversity ◽  
Content Type ◽  
Board Characteristics ◽  
Good Corporate Governance ◽  
Corporate Social

PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

Comparative CSR decision-making in the Middle East: an exploratory study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pierre El Haddad ◽  
Alexandre Anatolievich Bachkirov ◽  
Olga Grishina
Keyword(s):  
Decision Making ◽  
Middle East ◽  
Middle Eastern ◽  
Structured Interviews ◽  
Managerial Decision ◽  
Content Type ◽  
Nodal Model ◽  
Comparative Csr ◽  
High Level ◽  
Corporate Social

Purpose This study aims to explore the commonalities and differences of corporate social responsibility (CSR) perceptions among business leaders in Oman and Lebanon, two Middle Eastern countries forming a comparative dyad with a high level of cultural variance within the Arab cluster. Design/methodology/approach Semi-structured interviews were used to elicit qualitative data that were analyzed by means of multilevel analysis. Findings The findings provide empirical evidence that CSR is a powerful factor in managerial decision-making in the Middle East with the national cultures of Oman and Lebanon exerting partially differing effects on CSR decision-making. Practical implications The study enlightens practicing managers and policymakers in terms of the salience of multiple actors’ influence on CSR decision-making processes and the responses they may receive when developing and implementing CSR initiatives in the Middle East. Originality/value The study proposes a seven nodal model, which captures the flow of CSR decision-making in the research contexts.

Residents’ attitudes toward tourism development at Al-Juhfa, Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Ahmad Algassim ◽  
Akhmad Saufi ◽  
Diswandi Diswandi ◽  
Noel Scott
Keyword(s):  
Saudi Arabia ◽  
Social Exchange ◽  
Social Exchange Theory ◽  
Tourism Development ◽  
Structured Interview ◽  
Environmental Benefits ◽  
Structured Interviews ◽  
Content Type ◽  
Negative Impacts ◽  
Residents Attitudes

Purpose Al-Juhfa is a small village located near Rabigh City, between Makkah and Madinah, Saudi Arabia, with significant archaeological and religious resources. The purpose of this paper is to examine residents’ attitudes toward tourism development at Al-Juhfa. Design/methodology/approach The qualitative study uses purposive interviewing to recruit informants. Data was collected using semi-structured interview and open-ended questions. Eight semi-structured interviews were made and a list of open-ended questions was distributed to 134 informants. All data were analysed and no new codes were found after the answer of the first 49 informants analysed. Findings The results show that residents’ attitudes toward tourism development in general were positive with residents expecting to receive economic, social and environmental benefits. Residents were aware of potential positive and negative impacts of tourism development and appeared to balance these in developing their attitudes. Tourism was seen to empower residents and the religiosity of the community influenced their perception of tourism development. Originality/value This study contributes to the literature by supporting the use of social exchange theory in this context and by recommending the inclusion of religiosity in further studies.

Micro-loans and financial performance: a case of a Chinese commercial bank

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jasmine Alam ◽  
Mustapha Ibn Boamah ◽  
Yuheng Liu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Design Methodology ◽  
Annual Reports ◽  
Content Type ◽  
Overall Performance ◽  
Corporate Social ◽  
Corporate Social Responsibility Reports ◽  
The Relationship

Purpose This study aims to investigate the relationship between a commercial bank’s micro-loaning activity and overall performance over a 10-year period. Design/methodology/approach Quarterly data was obtained from the Wind Database, China Minsheng Banks’s official annual reports and annual corporate social responsibility reports from 2009 to 2019, to test the linear relationship between micro-loan activities and the overall financial performance of the bank. Findings The results of this study empirically demonstrate that there is a positive relationship between increases in micro-loaning activity and the overall performance of the bank. Some key recommendations for the sector are shared in the conclusion of this paper. Originality/value In the financial sector, some corporate social responsibility activities focus on the issuance of micro-loans. It is unclear, however, if this has also served as a means to increase profitability and overall performance for such institutions.

Drivers for voluntary intellectual capital reporting based on agency theory

2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel
Keyword(s):  
Propensity Score ◽  
Agency Theory ◽  
Propensity Score Matching ◽  
Intellectual Capital ◽  
Integrated Reporting ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Management Report

PurposeThe purpose of this paper is to investigate the drivers for voluntary intellectual capital (IC) reporting based on agency theory. This study responds to calls for critical investigations of IC reporting utilising Goebel’s (2015a) IC measuring approach to investigate the role of IC value and mispricing for IC reporting.Design/methodology/approachA mandatory management report offers a unique research setting in Germany. The content analysis results of 428 German management reports are used in a regression analysis with leverage, ownership diffusion, IC value and mispricing. Additionally, a propensity score matching approach examines the relationship between IC reporting and IC value.FindingsThe regression results show that companies use voluntary IC reporting to encounter mispricing. IC reporting is negatively associated with leverage, whereas ownership diffusion and IC value show no significant results. The propensity score matching approach is also not significant.Research limitations/implicationsThis study contributes to strengthening and testing agency theory for IC reporting. As mispricing is identified to play an important role for IC reporting, IC research should account for mispricing.Practical implicationsThe findings suggest to reopen a discussion on the declared aims of the German management report and the international integrated reporting model to provide information on value creation, as IC value shows no link to IC reporting.Originality/valueThis study innovatively links IC reporting to IC value and mispricing to investigate drivers for voluntary IC reporting.

Integrated reporting and integrated thinking in Italian public sector organisations

2017 ◽  
Vol 25 (4) ◽  
pp. 553-573 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes-Rossi ◽  
Rebecca Levy Orelli
Keyword(s):  
Public Sector ◽  
Processes Of Change ◽  
Press Releases ◽  
Structured Interviews ◽  
Integrated Reporting ◽  
Content Type ◽  
Early Adopters ◽  
Academic Literature ◽  
Reporting Framework ◽  
History Of

Purpose This paper aims to explore the linkages between integrated reporting (IR) and organisations’ internal processes, specifically focusing on investigating the internal mechanisms of change that can lead organisations to adopt IR disclosure and how this impacts on integrated thinking internally. Design/methodology/approach The paper draws upon previous analysis and insights provided in the IR academic literature, as well as analysing several directives, policy and framework pronouncements. The study also draws on the management accounting change literature, using it as a lens to observe early adopters’ practice. In addition, it provides detailed case studies considering the internal processes of change in five early adopters of the integrated reporting framework (<IRF>) and whether the adoption leads to internal “integrated thinking”. Five Italian public sector organisations are analysed, and the authors make use of official documents, press releases and in-depth semi-structured interviews with the major internal actors. Findings The research highlights that the processes of change in organisations adopting IR is their adoption of a way of thinking, that is, integrated thinking, as a result of the process of internalisation. Research limitations/implications Given the short history of IR, this sample is small due to the small number of early adopters. Originality/value The paper provides academics and policymakers with insights into the process of change to be considered while adopting the <IRF> and responds to calls in the IR literature for further field-based studies on IR’s impact on internal processes. Also, the paper highlights that the European Directive on the disclosure of non-financial and diversity information (2014/95/EU) has the potential to increase environmental, social and governance disclosures amongst European companies.

Sign in / Sign up

Export Citation Format

Share Document