Intellectual capital disclosure in integrated reporting: an impression management analysis

2015 ◽  
Vol 16 (3) ◽  
pp. 661-680 ◽  
Author(s):  
Gaia Melloni

Purpose – Intellectual capital (IC) is fundamental to understanding how firms create value; however, current IC disclosure (ICD) has been described as inadequate due to the lack of an established IC framework and companies’ actual commitment to report IC information. The International Integrated Reporting Council aims to foster ICD by means of integrated reporting (IR); such a report should display how IC and other forms of capital (e.g. financial) contribute to value creation over time. Drawing on impression management (IM) studies, the purpose of this paper is to assess the quality of ICD offered in IR. Design/methodology/approach – A manual content analysis of all the reports available in the International Integrated Reporting Council web site is run considering both the content of ICD and specific linguistic attributes (evidence, time orientation and tone). In addition, the study tests the relationship between the positive ICD tone and specific characteristics that may incentive managers to manipulate their disclosure to determine whether firms use ICD to manage public perceptions of corporate behaviour. Findings – The results of the content analysis show that majority of ICD is focused on relational capital, with limited quantitative and forward-looking information. Additionally, compared to non-ICD, ICD is significantly more optimistic. Furthermore, the positive tone of ICD is significantly associated with declining performance, bigger size and higher level of intangibles supporting the use of ICD as an IM strategy. Originality/value – The research contributes to the literature offering evidence of the quality of the ICD offered in the IR and demonstrating that ICD offered in the IR is used by managers opportunistically to advance their image.

2018 ◽  
Vol 19 (2) ◽  
pp. 367-386 ◽  
Author(s):  
Maurizio Massaro ◽  
John Dumay ◽  
Andrea Garlatti ◽  
Francesca Dal Mas

Purpose The purpose of this paper is to investigate the relationship between intellectual capital (IC) and sustainability using practitioners’ perspectives and by developing an analysis of comments and practices published in 1,651 blog posts in one of the leading sources of sustainability research: CSRwire.com. Design/methodology/approach A total of 1,651 posts, containing more than 1.5 million words, published by experts in the field of sustainability are analysed using Leximancer and content analysis. Findings The results reveal IC and sustainability to be complex topics under active discussion by practitioners, and several links to the IC literature are identified and compared. The findings focus on the managerial practices applied by leading companies, as discussed by practitioners, that show IC and sustainability influence each other in answering a plurality of demands or logics. Research limitations/implications First, the authors identify the need to study the managerial practices proposed by practitioners, rather than their company reports. Second, the authors propose developing a trading zone for IC researchers and practitioners. Third, the authors reflect on the role of new communication tools, such as integrated reporting, to connect IC and sustainability. Finally, the authors conclude that the relationship between IC and sustainability could benefit from a fifth stage of IC research that considers justifications of the worth of IC and sustainability practices. Originality/value The paper is novel because it addresses concerns about the relationship between IC and sustainability by examining messages posted by practitioners, rather than examining company disclosures. This leads to an understanding of the impact of practices rather than the desires motivating practice. The results support the view that it is time to remove the boundaries of IC research and work towards reconciling the worth of IC to different people in different contexts. The authors argue that practitioners require scholars to reduce the ambiguity between IC and its expected results. This would open the door to a potentially productive way of understanding IC and the complexity of economic, social, and environmental value. In short, researchers should change their research questions from, “What is IC worth to investors, customers, society, and the environment?” to “Is managing IC a worthwhile endeavour?”


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Natália Peroni Pellin ◽  
Alex Weymer ◽  
Leila Andressa Dissenha ◽  
Márcio André Leal Bauer

PurposeThe aim of this article was to analyze how the presence of the elements that constitute organizational links are related to sensemaking in a cooperative system of medical work.Design/methodology/approachA content analysis was conducted following interviews with the managers of the cooperative, which is a member of the Brazilian cooperative system and one of the largest in the world. This analysis enabled the systematization of the categories that were identified through the coding of responses, aided by Atlas.ti 8.0 software.FindingsAfter the analysis, it was possible to resize the constitutive elements identified in the specialized literature into three categories: identification, cooperation and recognition. The proposed resizing does not preclude the presence of the constitutive elements identified in the analysis, but it evidences the presence of these elements in a contextualized manner, suggesting a model of an organic organizational link that is dependent on the relationship between subject–object (organization), in which the different perceptions of meanings affect identification, and this can strengthen or weaken the link in a constant process of resignification.Originality/valueWith regard to its theoretical relevance, the work helps to bring concepts related to organizational links and sensemaking closer together as a process in the realm of intersubjectivity. This provides evidence of the presence of constituent elements of ties in a contextualized manner, demonstrating that the interpretation of managers aids sensemaking in a process of circularity and resignification.


2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel

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.


2016 ◽  
Vol 23 (2) ◽  
pp. 328-348 ◽  
Author(s):  
Hichem Khlif ◽  
Achraf Guidara ◽  
Khaled Hussainey

Purpose This paper aims to examine the relationship between the level of sustainability and tax evasion and test whether the level of corruption moderates such a relationship. Design/methodology/approach The sample consists of 65 developed and developing countries. Tax evasion is measured using a macro indirect approach used by Schneider et al. (2010). The sustainability level and corruption variables are collected from The Global Competitiveness Report for 2012-2013. Findings This study finds that the level of tax evasion is negatively associated with the level of sustainability (overall score and social and environmental score) and the quality of infrastructure. When we distinguish between low- and high-corruption countries, we find that this negative association is significant for low-corruption countries and insignificant for high-corruption countries. These results imply that the level of corruption may reduce the tendency of individuals in a given state to accept and trust their government in general and comply with the tax rules in particular. Originality/value Our empirical findings have policy implications for governments with high levels of tax evasion, as they highlight the importance of states’ engagements towards their citizens in reducing tax evasion.


2020 ◽  
Vol 28 (6) ◽  
pp. 1149-1178 ◽  
Author(s):  
James Guthrie ◽  
Francesca Manes Rossi ◽  
Rebecca Levy Orelli ◽  
Giuseppe Nicolò

Purpose The paper identifies the types of risks disclosed by Italian organisations using integrated reporting (IR). This paper aims to understand the level and features of risk disclosure with the adoption of IR. Design/methodology/approach The authors use risk classifications already provided in the literature to develop a content analysis of Italian organisations’ integrated reports published. Findings The content analysis reveals that most of the Italian organisations incorporate many types of risk disclosure into their integrated reports. Organisations use this alternative form of reporting to communicate risk differently from how they disclose risks in traditional annual financial reporting. That is, the study finds that the organisations use their integrated reports to disclose a broader group of risks, related to the environment and society, and do so using narrative and visual representation. Originality/value The paper contributes to a narrow stream of research investigating risk disclosure provided through IR, contributing to the understanding of the role of IR in representing an organisational risk.


2018 ◽  
Vol 19 (4) ◽  
pp. 814-835 ◽  
Author(s):  
Francesca Manes Rossi ◽  
Giuseppe Nicolò ◽  
Paolo Tartaglia Polcini

Purpose The purpose of this paper is to explore a new way to disclose intellectual capital (IC) in universities through their websites. Going beyond traditional tools used for intellectual capital disclosure (ICD), this study aims at identifying possible determinants of ICD via the web. Design/methodology/approach This paper analyses the institutional websites of a sample of Italian universities adapting the theoretical framework developed by Low et al. (2015) to the peculiarities of the Italian university system. Moreover, the relationship between certain explanatory factors identified in previous research and the extent of online ICD represented by two disclosure indexes was tested through an ordinary least squares regression model. Findings The analysis reveals the extensive use of ICD via websites, especially regarding human and internal capital, while the disclosure of external capital through this means is still limited. Internationality and online visibility both positively affect the extent of a university’s ICD. Research limitations/implications The paper represents the first study investigating online ICD and its determinants in universities, contributing new knowledge to help answer the how and what of the matter. Practical implications The results can serve as encouragement to university managers to enhance online ICD to meet the information needs of a wider audience. Originality/value This is the first study to provide evidence about online ICD in universities and to reveal some of the possible determinants to improve this disclosure.


2015 ◽  
Vol 30 (8/9) ◽  
pp. 756-784 ◽  
Author(s):  
Abdifatah Ahmed Haji

Purpose – This study aims to examine the role of audit committee attributes in non-financial information releases, with a focus on intellectual capital (IC) disclosures, following significant policy changes, mandating the audit committee function in Malaysia. The study argues that, given the changing informational needs of stakeholders and the ongoing discussion on integrated reporting, the role of the audit committee should extend to ensuring the overall quality of corporate reporting. Design/methodology/approach – The study draws evidence from a sample of leading Malaysian companies based on their market capitalisation over a three-year period (2008-2010), a period subsequent to the recent policy changes. The extent and quality of IC information, as a surrogate of non-financial information, was measured and regressed against several audit committee attributes, such as audit committee size, independence, financial expertise and meetings, controlling the overall governance and firm-specific variables. Findings – The findings show a strong positive role of the audit committee function in the overall amount of IC information as well as all three subcomponents of IC information (internal, external and human capital). The results are robust to controls for the overall governance and firm-specific attributes as well as different measures of IC information. Practical implications – The results suggest that the role of the audit committee function extends to non-financial information communication such as IC. Policymakers in Malaysia should, therefore, build on the recent regulatory changes and encourage audit committees to ensure that the overall quality of corporate reporting processes include social, environmental, intellectual as well as financial capital of a firm. Originality/value – This study considers the role of the audit committee in the wider corporate reporting process – drawing attention to its potential role in the espoused integrated business reporting. It also challenges the taken-for-granted assumption that restricts the role of the audit committee function to the traditional financial reporting process.


Author(s):  
Ngan Truong ◽  
Tahir Nisar ◽  
Dan Knox ◽  
Guru Prabhakar

Purpose The purpose of this paper is to investigate the service quality of full-service restaurants in Vietnam to explore possible factors that may impact customer perception, which subsequently influences customer satisfaction and behavioural intentions. Based on the DINESERV model and service clues, the possible dimensions to construct customer perception were realised, and four key dimensions were suggested. Design/methodology/approach Data were collected from four urban local full-service restaurants in Vietnam, and factor analysis and SEM-PLS were then performed to uncover the relationship between customer perception, satisfaction and behavioural intentions. Findings The results suggest that customer perception significantly influences customer satisfaction and behavioural intentions, and customer satisfaction itself is also found to have influence on behavioural intentions. Originality/value This is an original piece of work which contributes to the exploration of service quality in developing countries and to the incorporation of cleanliness into analyses of restaurant service quality in particular.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jaekyo Seo ◽  
Suhyung Lee ◽  
Alexandre Ardichvili

Purpose Human resource development (HRD) as an applied discipline is an example of a scholarly field that has emerged through the collaboration of scholars and practitioners with backgrounds in various foundational disciplines. This study interested in both the influence of other disciplines on HRD research and in HRD’s influence on other disciplines. The purpose of this study is to take stock of the relationships between HRD research and research in other academic disciplines affecting and affected by HRD research. Design/methodology/approach The study used content analysis of the top 100 most frequently cited empirical articles published in three HRD journals between 2000 and 2019 to identify disciplinary foundations of HRD research. The influence of HRD on other disciplines was scrutinized through citation analysis of work citing the top 100 articles. In addition, categorizing the 100 articles into six research themes, the influence of six research themes on citation patterns was explored. Findings The findings indicated that empirical research in HRD, as represented by the top 100 articles, relied mainly on theories and frameworks from two disciplines, management and psychology. Another important finding is that the top 100 HRD articles were cited most often in management publications and the rate of citation in management journals has been growing rapidly since 2005. The citation frequency of HRD articles in other disciplines including psychology, social sciences, education and medicine and nursing shows a general upward trend as well. In addition, there was a difference in disciplines providing theoretical foundations to the HRD articles and citing the articles depending on six predominant research themes, identified in HRD articles. Originality/value This study empirically identified theories and disciplines contributing to HRD research, considering the influence of cited research on the HRD articles through content analysis. In addition, the findings of this study broadened the understanding of the relationship between HRD research and other disciplines by examining the contributions of HRD articles to other disciplines. Finally, this research provided new information regarding the changes in dominant themes in HRD research over time.


2019 ◽  
Vol 32 (5) ◽  
pp. 1532-1557
Author(s):  
Gerard William Stone ◽  
Sumit Lodhia

Purpose A goal of integrated reporting (IR) under the International Integrated Reporting Council (IIRC)’s leadership is to provide clearly written, comprehensible and accessible information. In light of this objective, the purpose of this paper is to explore the readability and accessibility of integrated reports, an issue magnified by the IIRC’s continual commitment to clear and readable report language, and its intention for IR to become the corporate reporting norm. Design/methodology/approach In a whole text software facilitated analysis, the study utilises readability measures and supplementary measures of reader accessibility in a multi-year analysis of a large sample of global integrated reports sourced from the IIRC examples database. Findings The findings highlight the low readability of analysed integrated reports and indicate that readability is not improving. The supplementary measures suggest sub-optimal use of visual communication forms and overuse of structural presentation techniques which may contribute to reader accessibility of the analysed reports. Research limitations/implications The study extends readability analysis to an emerging corporate reporting phenomenon and its findings contribute to the growing IR literature. The study applies supplementary measures of reader accessibility which advance the methods available to assess the communication efficacy of integrated and other corporate reports. Practical implications The analysis of the readability and accessibility of integrated reports in the study indicates that the IIRC’s goal of clear, comprehensible and accessible reporting is not reflected by reporters’ practices. This has implications for the IIRC, reporting organisations, report readers and regulators. Originality/value The study represents the first large-scale analysis of the readability and accessibility of global integrated reports.


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