PurposeThe purpose of this paper is to develop a conventional analysis of the content of researches published in high quality academic journals, specifically in the accounting area, with particular emphasis on intellectual and human capital, in order to provide guidance for authors on research paper characteristics that influence the journal's acceptance decisions.Design/methodology/approachThe paper provides a quantitative analysis of the additional characteristics (the main characteristic considered by default is the quality of the journal's contents) that could increase the chances for publishing a research paper in a high quality journal.FindingsThe findings indicate several additional characteristics which may influence the journal's acceptance decision during the publication process. These characteristics relate to the journal's origin, type of research, presentation of literature within the research paper and the type of research approaches, characteristics that should be considered by any researcher from the beginning of the process of writing the research paper.Originality/valueThe present paper contributes to the existing literature by analyzing the research characteristics deemed important for the publication of a research paper related to intellectual capital in a high quality journal. The study identifies a pattern for the researches published in this field, in order to provide benchmark for further researches, thus being the first study conducted in this area of interest.
PurposeThe purpose of this paper is to investigate the extent of intellectual capital (IC) disclosure on the UK biotechnology initial public offering (IPO) prospectuses. The study is based on companies going public on the London Stock Exchange (LSE) and the London Alternative Investment Market (AIM) over the period 2005‐2007.Design/methodology/approachThe extent of IC disclosure is collected and measured by using the IC disclosure index and the framework proposed by Bukh et al. The differences in the level of IC disclosure are analysed by modelling some firm‐specific determinants such as size, maturity, age and independence of the board.FindingsIt is shown that primary listing companies on the LSE disclose more IC information than those on the London AIM. Maturity and independence of the board are associated with IC disclosure, while size and age are not related, showing the importance of corporate communication as a signal of credibility to possible investors at IPO stage.Originality/valueThe main contribution of the paper is to analyse IC disclosure in the UK biotechnology IPO prospectuses. Previous literature does not focus on this reporting genre as an important corporate communication tool, as most research investigates IC disclosure only in annual reports and country regulation settings.
PurposeThe purpose of this paper is to discuss the philosophical baseline of two popular business schemes, the business model and a latter variation of human resource costing and accounting (HRCA). The aim is to identify crucial assumptions inherent in the models that may influence attempts of creating a symbiosis between them.Design/methodology/approachThe paper provides a conceptual perspective on the two models. Data for the paper were gathered during a case study on the usefulness of HRCA for small and medium‐sized enterprises (SME) as well as from extensive literature readings. These data have been compiled and analysed under the influence of Weick's method for generating theory.FindingsWhile the business model and HRCA share a common purpose they try to provide different qualities to the organisation. Whereas the former seeks to realise dreams and ambitions, the latter supports displacements of threats towards organisations and managers. This difference is a potential source of friction that may result in a harmful organisational behaviour.Practical implicationsThe paper also expands on the theoretical baseline of two popular business schemes. By identifying crucial differences, amendments and adaptions are possible to make within organisation or among business consultants that could override the problems. Some suggestions are made on this issue.Originality/valueThe paper expands the theoretical and philosophical understanding of popular business schemes. By introducing a theory of happiness a new perspective providing crucial information of the function of the two business schemes is revealed.
PurposeThe purpose of this paper is to explore if and how a professional identity can be formed in the wake of the foundation of a new public service. In the article, the authors focus on how different forces, regulative and emergent, interact and contribute to a development of a coherent understanding of a professional identity in a decentralised service. The case of local authority energy and climate consultancy is an illustrative example of a nascent service occupation in Sweden where the individuals holding the job title are geographically dispersed.Design/methodology/approachThis paper has a qualitative approach and relies on three different data sources: participatory observations, written documents, and in‐depth interviews with energy and climate advisers working in a particular region in Sweden. The study covers the years 2005 to 2010.FindingsThe findings suggest that identity formation among geographically dispersed individuals in a nascent service occupation is possible. The development of collective understanding of the professional identity is influenced both by regulative and emergent forces, which interact.Research limitations/implicationsThis paper is limited to one particular service occupation in Sweden, from which generalisations are limited.Practical implicationsThe findings may serve as useful input for management in order to understand facilitation of identity building among professionals in decentralised functions.Originality/valueThe value of this study lies in the comprehensive approach to how different pertinent forces interact with each other in order for a cohesive understanding of a work‐related identity to develop in newly‐established service occupations.
PurposeThe purpose of the paper is to reflect upon applicability of different intellectual capital (IC) accounting techniques with considerations of accounting motives. This has been achieved by comparing major foci and measurement issues related to two generic accounting motives, namely internal management and external reporting.Design/methodology/approachThis paper is based on the taxonomy of accounting approaches reported by Fincham and Roslender and is an appreciation of the importance of this taxonomy in the field of IC accounting, as well as an illustration of how the organization decides on applicable accounting approaches.FindingsThe paper concludes that there is no universally applicable accounting technique or approach. For internal management, the scorecard and narrative approaches help generate actionable plans, whereas the hard valuation and scorecard approaches help generate comparable and methodologically reliable reports for external reporting.Originality/valueThe paper contributes to IC management literature by offering an alignment perspective and a critical evaluation of the generic accounting motives and existent accounting approaches. Implications for the practitioner, the policy maker, and the academic are provided.
Purpose – This paper aims to outline the financial and human cost of bullying in the workplace. The authors investigate how bullying is perpetrated so that management controls to prevent bullying can be put in place, reducing financial and human costs, and the risks posed to organisations by bullying.
PurposeThis paper longitudinally examines the intellectual capital (IC) disclosure practices of Nigerian banks following the restructuring exercise and the subsequent policy changes in the Banking sector.Design/methodology/approachContent analysis of annual reports of the banks was carried out over a period of four years (2006‐2009), a period following the consolidation exercise and the subsequent introduction of the mandatory code of corporate governance. A self‐constructed IC disclosure checklist was used to measure the extent of IC information disclosed in the annual reports. A number of statistical techniques were performed to assess the trend of IC disclosures and compare the IC disclosure categories.FindingsThe results show that the overall IC disclosures of the Nigerian banks increased moderately over the four year period. Human and internal capital disclosures dominated the banks' IC disclosures, with only internal capital disclosures showing a significant increasing trend over time.Research limitations/implicationsThe increasing trend of IC disclosures of the banks suggests that the introduction of the mandatory code of corporate governance had positive implications on IC reporting practices. Hence, the findings of this study give support to previous research that established a strong positive association between IC disclosures and corporate governance development. However, this study only examines the IC disclosures of Nigerian banks following the reformation of the banking sector. Future research should incorporate other countries experiencing similar regulatory changes.Practical implicationsThe introduction of the corporate governance code might have positively influenced the IC disclosure practices of the banks. However, the results had shown that the IC disclosures were mainly inconsistent and discursive in nature. Hence, the regulatory authorities, accounting setters and other relevant government agencies may wish to devise a detailed IC reporting framework for the banking sector.Originality/valueDespite the significance of the banking sector to any economy, the IC disclosure practices of the banks largely remained unexplored. This study provides a much needed longitudinal assessment of the IC disclosures in the case of Nigerian banks following a major consolidation exercise and the introduction of a mandatory code of corporate governance specifically designed for the banks. The study also represents the first empirical investigation of IC reporting practices in Nigeria.
Purpose – This paper seeks to enhance understanding of the role and effect of corporate culture as a unique strategic asset on the success of business models.
PurposeHealth is a main resource for human functioning. Embedding generative health management within organisations, therefore, is useful for health and productivity reasons. Generative health management requires a change in the thinking and actions of all stakeholders, and should be regarded as a system transition that may be supported by a value case. In this study, a value case methodology is described and piloted. The aim was to investigate the efficacy of the value case methodology for generative health management within organisations.Design/methodology/approachThis paper takes the form of a case study, in which the interactive value case methodology is piloted within a research foundation in The Netherlands.FindingsThe different perspectives from the internal stakeholders on generative health management were made explicit, and revealed a strong relation between organisational development and health. The interactive value‐case methodology has initiated a process in which stakeholders jointly defined the full value of generative health management. During that process, some stakeholders developed an active personal commitment towards the transition.Research limitations/implicationsThe research was only carried out in one case. The value case methodology is potentially also useful for other transitions (long‐term complex developments or system innovations). The case study provided a broad view on the relevance of health for all stakeholders within this single case, and contributed to ownership of the transition.Practical implicationsA value case presents stakeholders' multi‐perspective visions and preferences with regard to health and organisational development. The participative approach opens up ways to an active commitment of relevant stakeholders who are willing to support transitions.Originality/valueThe methodology to assess the full value of complex transitions is still of an explorative nature. The value case methodology may offer innovative ways to support transitions in individuals, organisations and society as a whole.
PurposeThe purpose of this paper is to investigate the determinants of the intellectual capital performance of UAE banks over the period 2004 to 2010.Design/methodology/approachMultiple regression analysis was used to test the relationship between the intellectual capital performance as a dependent variable and certain independent variables.FindingsThe results indicate that standard variables, namely investment in information technology systems, barriers to entry, bank risk, bank size, bank age and bank listing age, are important. The results also show that the global financial crisis and market structure as measured by concentration ratio variables, which have not been considered in previous studies, have a significant impact on intellectual capital performance.Research limitations/implicationsMore evidence is needed regarding the determinants of intellectual capital performance before any generalisation of the results can be made. In addition, the empirical tests were conducted only for UAE banks between 2004 and 2010. Therefore, it cannot be assumed that the results of the study extend beyond this group of banks or to different periods.Practical implicationsThe paper might help the banking regulators address the factors affecting intellectual capital performance and also help banks to take action to developing their performance, in turn maximising their value creation.Originality/valueThe paper adds to the literature discussing determinants of intellectual capital performance in banks. In particular, it tests the theory that the global financial crisis and market structure, as measured by concentration ratio, have an impact on intellectual capital performance.
PurposeThe purpose of this paper is to examine the human resources disclosure in Danish Intellectual Capital Statements to determine if these disclosures enhance the comparability of business model performance among companies.Design/methodology/approachThe paper applies the Danish Intellectual Capital Statements Analysis Model to five Danish companies' intellectual capital statements. This analysis reveals the extent to which these companies report human resources in their disclosures. The analysis also reveals how such disclosures can be used to make internal comparisons year‐to‐year as well as to make comparisons among companies. The five companies were analysed systematically using the same methodology.FindingsThe paper shows that it is feasible to analyse intellectual capital statements systematically and to compare corporate business models. In addition, the paper shows that intellectual capital statements, which convey company‐specific information on human resources, play a role in corporate value creation.Practical implicationsThe paper shows that intellectual capital statements guidelines can be useful in the description of business models and in the analysis of the role of human resources disclosure in corporate value creation.Originality/valueThe contribution of the paper is its use of intellectual capital statements guidelines as a methodology for analysing the role of human resources disclosure in corporate value creation. This methodology has application in the development of the integration of business model measurement performance with traditional corporate financial reporting.
Purpose – The purpose of this study is to explore explanation factors regarding labor communication practices by many of the world’s large companies. Design/methodology/approach – The data collection focuses on the 2009 fiscal year sourced from 460 highly visible public companies in 57 separate countries. A total of 14 Global Reporting Initiative (GRI) items are used as the benchmark of labor disclosure checklist. Findings – The authors’ results provide evidence that the overall level of labor-style communication is 66.4 percent. Companies in emerging market jurisdictions have the highest labor disclosure communication. Employment information is the most frequently disclosed set of items. Lesser communication is noted for training and education, and diversity and equal opportunity issues. Statistical analysis indicates that political visibility, jurisdictional, creditor pressure, and corporate governance variables are directly related to labor communication. Research limitations/implications – This study assumes that the 14 items used as the checklist benchmark from GRI (2006) are voluntary in each country. Results suggest that combination of legitimacy theory and stakeholder theory are relevant in explaining global context of labor communication. Originality/value – A broader international survey of labor practices using the specific guidelines of the globally respected Global Reporting Initiative (GRI) has not yet been conducted. This study contributes insights for a better understanding of labor communication practices among three jurisdictional business systems.
PurposeThe purpose of this paper is to present a new method to account for investments in human capital, which the authors have named investment capitalization. This method uses investments in training and hiring of employees as a surrogate for their intellectual capital, capitalizing and amortizing the investment over its useful life. Investment capitalization is compared to the more conventional Generally Accepted Accounting Principles (GAAP) and the newer intellectual capital accounting methods.Design/methodology/approachScenarios comparing the effects of downsizing or organizational performance are used to demonstrate the effects of decisions based on intellectual capitalization and GAAP.FindingsResults of the scenario analysis show that the investement capitalization method causes less destruction of intellectual capital during downsizing decisions than does GAAP.Originality/valueThis paper presents a new method of accounting for intellectual capital and demonstates the benefits of this method when making downsizing decsions.
PurposeThis paper aims to understand how managers in an Australian financial institution coordinated different organisational actions for the management of the work health of employees, by adopting “work‐life balance” initiatives.Design/methodology/approachThe paper uses a narrative approach to analyse various internal and external documents and has also collected “self‐accounts” of employees.FindingsIt was found that management used “work‐life balance” initiatives to manage both the physical and emotional health of employees. Management's main focus was on community volunteering, which was satisfying for employees, but also of significant benefit to the organisation in terms of marketing and branding. Thus, management was able to use these initiatives to motivate employees to work towards organisational goals.Originality/valueThe paper contributes to the developing literature on human competence accounting by using employee “self‐accounts” to compare with organisational statements in relation to worker health.
PurposeThe purpose of this paper is to explore and compare current practice of the measurement and reporting of human resource (HR) information by firms belonging to the manufacturing and service sectors in Sri Lanka.Design/methodology/approachSurvey methodology was used and 30 firms belonging to the manufacturing and service sectors responded. For the data analysis descriptive statistics, χ2 test, principal component factor analysis and independent sample t‐test were used.FindingsThere were sectoral differences in reporting some of the HR indicators. HR indicators were mainly collated internally and a limited number of indicators were externally disclosed. A majority of firms, irrespective of business sector, maintained records of HR indicators in the manual form. Three main factors that inhibit the measurement and reporting of HR were identified as “Insufficient resource allocation”, “Lack of knowledge in human resource measurement and reporting”, and “Negative impact on organization”.Research limitations/implicationsThe research was conducted using survey research methodology as a pilot study to establish baseline data and to be a source of general guidance in stimulating future research.Practical implicationsThe findings suggested that firms in Sri Lanka need to have more effective systems for the measurement and reporting of HR.Originality/valueThe majority of past studies on the measurement and reporting of HR were conducted on the voluntary disclosure of information in annual reports. Firms were selected on the basis of the market capitalization, and data were analysed using content analysis. Yet, the literature suggests that the content analysis of disclosed annual report information is mainly based on a non‐random sample of firms and many firms do not disclose all the available information. The current empirical survey‐based study explored and compared HR measurement and reporting practices of firms belonging to the manufacturing and service sectors in Sri Lanka.
PurposeThe purpose of this paper is to discuss how a decision of restructuring and firing people in a Portuguese company was based on financial data, and how the interpretation of such data made the process quite complex. This complexity was particularly relevant in the litigation that followed. At the core of the restructuring decision was the evolution of the firm's operating income; and a central point in litigation was precisely what should be considered the operating income of the company under analysis, and how it could influence the case's court outcome.Design/methodology/approachIn 2008 a Portuguese company fired people in its finance department. The main reason presented by the management to the laid off persons was the evolution of the firm's operating income, which was negative for several consecutive years. The paper, after a background analysis of restructuring decisions and financial performance, will focus on this case and the correspondent issues, that are mainly related to the concept of operating income, the style of communication between managers and affected employees, and court procedures. It will also compare the Portuguese accounting regime in 2008, with the present one, introduced in 2010 and based on IFRS, as far as the nature of operating income is concerned.FindingsThe main conclusion is that standards of accounting and financial reporting can have an important role in justifying restructurings and lay off decisions, and are quite complex to discuss in court cases related to labor laws. Also, changes in accounting systems can have a significant impact in measures of economic performance, opening a wide field of interpretation and legal uncertainty about case outcomes. Judges must have the capacity to navigate through such intricate questions, and see financial information numbers in the light of a company's true economic function.Practical implicationsThe paper highlights the problems that can arise when financial data are the basis for layoffs. Given the nature of accounting conventions, if litigation follows, a significant degree of complexity can be brought to the legal process. Also, managers must state, in very clear terms, reasons for restructuring, and, when they stress financial performance, related indicators must have an objective nature.Originality/valueThe paper has value for managers engaged in restructuring processes and also for the legal professions, as far as the relation between layoffs and financial performance based on accounting data is concerned.
PurposeDrawing on the concept of intellectual capital (IC) as a complex web of intangible resources, this paper seeks to outline a method for making sense of IC utilising narratives, numbers and visualisations.Design/methodology/approachThe paper details the use of organisational narratives to make sense of the complexity of IC and how it works within a firm. It then demonstrates how organisational interventions into IC might be prioritised and developed.FindingsThe method is presented in the context within which it was developed, being a research project into how IC works within a division of a financial services company. In the project, divisional management was dissatisfied with its current financial and non‐financial performance measures. As a result, it engaged with the researchers to identify how to make sense of IC, how IC created value and how this could be used to inform management interventions.Originality/valueThe paper contributes to the literature on management accounting and IC by presenting a relatively novel method for: disentangling complex IC interactions at a point in time into its discoverable components, prioritising interventions, and revealing IC system dynamics when the method is repeated over time.
PurposeThe purpose of this paper is to examine the intellectual capital reporting (ICR) practices of listed non‐financial companies in Bangladesh as an example of a South Asian developing country, and to empirically investigate some company characteristics as determinants of such practices.Design/methodology/approachThis is an empirical study of ICR by 90 listed companies in Bangladesh in 2008‐2009 using content analysis of annual reports. The study uses a weighted disclosure index and ordinary least squares regression analyses to test the association between company characteristics and the extent of ICR.FindingsThe study finds that despite the stock market growing significantly during the recession period, there is a tendency of companies not to disclose IC. The study also confirms that size and industry are important attributes to explain the IC disclosure (ICD) issues in Bangladesh. Unlike prior studies, the study finds that the IT sector does not tend to disclose more extensively, and that companies currently fail to disclose many important items such as patents, trademark and copyrights. The result is an indication that companies in Bangladesh are reluctant to disclose IC. The study is also similar to Abeysekera and Guthrie, who found that Sri Lanka is a proactive rather reactive country in terms of ICR. The study also finds ICR depends on the self‐interests of the company.Research limitations/implicationsThe scope of this study is limited to single year, 2008‐2009. It would be interesting to replicate this study in other developing countries or a group of developing countries in South Asia that have many similarities to the Bangladesh socio‐economic environment. Nevertheless, the study incorporates the current level of ICR transparency in Bangladesh.Originality/valueUnlike previous studies, the present study is based on a developing country where the capital market is growing significantly during the recession years. The study also develops a weighted disclosure index in a developing country context, based on the extensive literature of ICD and some new characteristics, namely non‐family ownership, audit committee and liquidity risk.
Purpose This paper aims to investigate changes in corporate disclosures of labour‐related costs in financial statements arising from a change in the accounting regime from generally accepted accounting principles (GAAPs) to international financial reporting standards (IFRSs) in Australia. Design/methodology/approach An archival empirical approach is taken. Data are sampled for 160 listed companies in Australia over seven years covering Australian GAAPs (2003‐2005) and Australian IFRSs (2006‐2009) periods. To measure disclosures, a classification and count is made of line items for labour‐related costs found on the face of and in the notes to financial statements. These disclosures are analysed against firm‐specific characteristics and industry categories. Findings Results reveal companies disclosing “total labour costs” rose from about 60‐85 per cent, and the discretionary disaggregation of “total labour costs” became more prevalent. Companies providing disaggregated information in the post‐IFRSs period are characterized by lower total assets, lower sales and lower labour costs. Their return on equity and labour intensity are not found to be differentiating characteristics. Reasons for these phenomena are addressed. Originality/value Previous studies have not analysed the effect of IFRSs adoption on disclosures of labour‐related information. This study provides new evidence about the types of firms that have responded to IFRSs with new or enhanced labour‐related financial disclosures. It points to new opportunities for research and financial analysis from the enhanced availability of corporate‐level labour cost data.
