Visualising Intangibles: Measuring and Reporting in the Knowledge Economy
Abstract
Despite the now widely recognized importance of intangible assets and intellectual capital, they still appear to be poorly understood by both academics and practitioners. Indeed, the necessity for adopting a fresh approach to their reporting, measurement and management is today generally clear and accepted. This book gives room to new perspectives which broaden the scope and depth of the investigation, whilst also opening up innovative methods and opportunities for practice.
... Moreover, with the increase of Intellectual Capital in budget items, which absorbs the most resources and generates the most impact, became essential to consider and introduce this kind of information (Marzo & Zambon, 2012). ...
... However, it leads us to hope that it is increasingly recognized the need to adopt new approaches to the measurement and management of intangible assets. Moreover, there is still a need for new models, tools and methodologies that are significant for the fields of theory and practice; one of these may be Popular Financial Reporting (Marzo & Zambon, 2012). ...
The study aims to explore how Popular Financial Reporting allows transparency in a hybrid organization. The investigation is carried out considering Key Performance Indicators (KPIs), outputs and responsibilities, including all the actors involved. The paper uses longitudinal and exploratory case study in the Piedmont Region, in the City of Turin and the Social Cooperative Arcobaleno. Main findings show that actors of governance, i.e. citizens, employees, administrators, members, and elected politicians have different function and influences in hybrid organization. The popular financial reporting is flexible depending on the actors and identifies different KPI's to improve transparency.
... Focusing on intellectual capital (IC), we investigated the forward-looking orientation of its disclosure as, similarly, Kristandl and Bontis (2007) considered future in their assessment of intellectual capital disclosure. IC is central to appreciate how firms create value (Zambon & Marzo, 2007;Abhayawansa & Guthrie, 2010) and the International Integrated Reporting Council (IIRC, 2013) promotes intellectual capital information (ICI) in IR. ICI is extensively discussed in accounting literature and come to be more relevant because of its enclosure, along with other correlated capitals, in the International Integrated Reporting Framework (IIRF) (IIRC, 2013). ...
... In this regard, it has been demonstrated that voluntarily IC disclose is beneficial for companies and some scholars argued that IR could improve ICI by depicting a complete view of the firm value creation process that comprises all intangible resources and financial and physical capitals (Beattie & Smith, 2013;Abhayawansa, 2013). In general, information on IC is crucial to appreciate how firms create value (Zambon & Marzo, 2007; Abhayawansa and Guthrie, 2010), but not always IR adopters provide informative disclosures about both intellectual capital and forward-looking intellectual capital. Therefore, whether firms really use IR to disclose FL_ICI is still an actual question. ...
The aim of the paper is to explore the amount of forward-looking intellectual capital information (FL_ICI) in Integrated Reporting (IR) and the effect of firm characteristics on FL_ICI within this context. This study empirically bridges the research gap on the issues of forward-looking information (FLI) and adds to intellectual capital (IC) disclosure research. In particular, the paper responses to two research questions specifically: what are the extent and the content of FL_ICI and what are the factors that impact on different IC voluntary reporting behaviors in IR. A content analysis is apply to inspect the subjects and the amount of FL_ICI in reports accessible in the web site of the International Integrated Reporting Council. Five Models are verified using a multivariate regression analysis to investigate the influence of three independent variables (firm size, profitability and leverage) on FL_ICI. The research proves that companies are reluctant to disclose FL_ICI in integrated reports. The findings of the research show that the majority of FL_ICI regards relational capital. The regression model also reveals that firm size and profitability have a statistically significant influence on specific topics of FL_ICI. On the contrary, leverage appears insignificant in determining the amount of FL_ICI. The research contributes to prior disclosure literature regarding forward-looking information since prior research results are unclear. There is a limited number of studies that investigated FL_ICI in relation to firm characteristics and no studies have investigated this issue within the setting of IR.
... In recent years, one of the most important emerging features of economic systems and organisations is the role of intangibles in wealth creation, which are for this reason often comprehensively referred to as Intellectual Capital (Marzo & Zambon, 2012). ...
... What seems to be increasingly recognised is indeed the necessity for adopting fresh approaches to the measurement and management of intangibles. Although some steps have been made towards a better visualisation of these resources, a clear knowledge gap continues to exist in this field, calling for new models, tools and methodologies significant to the realms of theory and practice (Marzo & Zambon, 2012) The purpose of Popular financial Reporting is to provide consolidated economic and financial data in a form that does not generate confusion or discouragement for non-professionals. The popular Financial Reporting (PFR), properly designed, can play an important role in the dissemination of information, aimed at making public information available for educational purposes. ...
The Popular Financial Reporting is an accountabilty tool that aims to present the activity of public administration with simplicity and transparency, facilitating communication paths with stakeholders (Biancone, Secinaro, 2016). The purpose of Popular financial reporting is to provide consolidated economic-financial data in a form that does not generate confusion or discouragement for non-professionals. Popular financial reporting (PFR), properly designed, can fulfill an important function in the dissemination of information, understood as making available to the public information for educational purposes. The CFR can stimulate stakeholders to be involved in budgetary deliberations. The CFR also contributes to the development of informed stakeholders and stakeholders The starting point is the analysis of the needs of the company's stakeholders, for the representation of the company's value and, consequently, of its social impact. Maiolini et al. (Maiolini et al., 2013) argue that "a social enterprise generates social impact because it involves property, management and multiple categories of stakeholders (from volunteers to financiers) in such a way as to foster important relations with local communities with which interact. " Stakeholders must be able to recognize and legitimize the impact deriving from the actions of social enterprises (Solari, 1997). Not only that: understanding the needs of the stakeholders is a key element in defining the ex-ante objectives and, consequently, in order to ensure consistency in terms of the impact of the activities carried out (Kail, Lumley, 2012). In this sense, "the social enterprise, given its inclusive and participatory nature, seems the most dedicated and devoted actor to the generation of positive and generalized social impacts" another graft present in the draft made takes into consideration the analysis BENEFITS COSTS create for public budgets Some international impact measurement tools are compatible with the logic of Popular Financial Reporting: • BACO ratio (Best Available Charitable Option) • Cost-Benefit Analysis (CBA) • Social Return On Investment (SROI) • Balanced Scorecard • Social Impact Assessment (SIA) • GRI Sustainability Reporting Framework • Randomized Controlled Trials (RCT) • Outcomes star • IRIS (Impact Reporting and Investment Standards) In the POPULAR, approaches to the creation of value can be inserted: • Logical framework approach (logframe): it is a 4 lines matrix (activities, outputs, objectives, impacts) and 4 columns (narrative description, objectively verifiable indicators, verification tools, assumptions) that allows to better represent the intervention or the project in all its phases and its components. • Outcomes chain / outcomes hierarchy / theory of change: Once the "chains" of actions leading to the impact have been described, we move on to the phase in which it is necessary to find indicators to measure it. At present, the indicators in terms of the social impact of Iris-The Giin are considered among the most complete, as they also consider the indicators of the Global Reporting Initiative relating to sustainability reports. The study intends to present, through the methodology of a case study, real and applicative as the Popular Financial Reporting is a tool for reporting the economic-financial-equity and social impact, responding to the needs of knowledge and transparency of stakeholders. The case study analyzed is a social cooperative, which works for the environmental sector, waste recycling, in the territory of Turin, Italy.
... This was followed by researchers from the United Kingdom responsible for 9% of the authorship. Italian authors accounted for 6% (Corrado, Haskel & Jona-Lasinio, 2016, 2017a,b, 2019Jona-Lasinio & Meliciani, 2018;Marrocu, Paci & Pontis, 2012;Marrocu & Paci, 2010;Zambon & Marzo, 2012), while Australian and Spanish ones for 5% (Aguer-Hortal, 2018; Alfaro, Lopez & Nevado, 2011;Lopez & Olivella, 2018;López-Ruiz, Alfaro-Navarro & Nevado-Peña, 2016;Navarro, Ruiz & Peña, 2014), followed by Chinese and German (Erickson & Rothberg, 2017;Li, Vo & Wu, 2019;Li & Wu, 2018;Roth, 2010). However, looking at the narrow scope of intangible research in economics related to development and productivity, the most notable contributions are made by the aforementioned USA, Japan and several EU economies (Italy and Jona-Lasionio, Acknowlegment ...
Purpose: This paper provides a bibliometric insight into the development of the field with the focus on the role of intangible capital in the economic literature.Design/methodology/approach: A systematic literature review of the development of the field of intangible capital is relying on bibliometric methods, combined with a standard descriptive approach to literature review to add depth. Bibliometric methods are used, focusing primarily on identifying timeline, key authors and author cooperations, most important papers, topics and most cited papers.Findings: After the Corrado et al. (2005, 2006) paper there is a significant number of papers dealing with methodology, measurement and empirical analysis, either of intangible capital as a whole or specific component. The study of the references reveals a clear indirect link between the micro and macro-level research, however a clear void between the very empirical economics and the more conceptual management field.Originality/value: It is the first such comprehensive bibliometric study of the intangible capital literature in economics, and as such complements the approach taken by very few other authors. It sheds light on the most notable authors and papers and their importance in the field, but also highlights the diversity in the literature.
... Accordingly, reporting on financial and non-financial capitals is not an objective in itself, as it serves as a means through which firms can focus on the factors that are most important to the organization's underlying sustainability (IIRC, 2015). Previous studies have concentrated on intellectual capital's importance within IRs (Zambon & Marzo, 2007;Abhayawansa & Guthrie, 2010;EY, 2014;Melloni, 2015;Santis, Bianchi, Incollingo, & Bisogno, 2019), investigating its contribution to value creation (IIRC, 2011). Furthermore, scholars have criticized the connection between what firms disclose in their reports and how they actually function (Brown & Dillard, 2014;Stubbs & Higgins, 2014;de Villiers, Venter, & Hsiao, 2017). ...
This study investigates how firms within the financial industry disclose financial and non-financial information in their integrated reports, by analyzing a sample of the banking sector published over five years (2014–2018). During the first phase, a content analysis methodology was conducted to investigate the disclosure level of six forms of capital, i.e., capitals. A principal component analysis then was implemented to reduce the dimensionality and investigate the relationship between capitals’ information. The main findings show that during the observed period, the focus mainly is on financial capital, while information on non-financial capitals is underdeveloped. A relationship exists among all non-financial capitals, but not between financial and non-financial capitals. The paper contributes to the academic debate on the use of integrated reports (IRs) in practice, providing useful insights regarding financial and non-financial disclosure.
... The academic literature views intellectual capital (IC) as nonmonetary resources or intangible assets and provides several examples, such as innovation, employee training, know-how, research and development, and customer satisfaction (MERITUM, 2002;Firer and Williams, 2003;Lev and Zambon, 2003). These elements depict ways in which firms activate value creation processes (Zambon and Marzo, 2007;Abhayawansa and Guthrie, 2010) and are rapidly becoming important inputs for investment decisions (Gamerschlag, 2013;Vitolla et al., 2020a). The transition from a manufacturing-based to a knowledge-based economy has significantly increased the value of IC in corporate value creation processes (Barth and Clinch, 1998;Petty and Guthrie, 2000;Kallapur and Kwan, 2004). ...
Due to the transition from a manufacturing-based to a knowledge-based economy, the relevance of intellectual capital (IC) in firm value creation processes has significantly increased. Considering that traditional financial disclosures do not contain IC-related information, various stakeholders have long asked companies to voluntarily disclose their intellectual resources for those to be incorporated into firm performance considerations and valuations. The advent of integrated reporting provides managers with an innovative tool to address IC disclosure. Nevertheless, despite research already focused on IC information in integrated reporting, knowledge regarding the benefits that companies enjoy through divulging IC-related information in integrated reports remains limited. To fill this gap, this study empirically analyses the impact of IC disclosure quality on firm value in the context of integrated reporting. Based on a sample of 110 companies, findings suggest a significantly positive relationship between all three components of IC (structural, human, social and relationship) and firm value, generating multiple implications for reporting entities, investors, regulators, and managers.
... This study aims to analyse the board of directors' role on intellectual capital disclosure quality (ICDQ) after the advent of integrated reporting. The transition from a production-based economy to a knowledge-based economy has significantly increased the importance of intellectual capital in a firm's value creation process (Abhayawansa & Guthrie, 2010;Barth & Clinch, 1998;Kallapur & Kwan, 2004;Zambon & Marzo, 2007). In fact, intellectual capital now represents a key element to strengthening a company's competitive advantage and to achieving financial objectives in the medium and long-term (Guthrie & Petty, 2000). ...
Intellectual capital is an important tool for strengthening a firm's competitive advantage and helping it achieve its medium-and long-term financial objectives. Currently accepted accounting principles do not outline strict rules and regulations for intellectual capital disclosure. However, the advent of integrated reporting offer firms an innovative tool to disseminate this information. Although previous research has analysed the intellectual capital found in integrated reports, no studies have analysed the board of directors' role in intellectual capital disclosure policies. This study uses agency theory to analyse the effect of board characteristics on intellectual capital disclosure quality (ICDQ) in the context of integrated reporting. To this end, it develops a new scoring system to measure ICDQ. The results, based on a sample of 130 international firms operating in different sectors, show a positive relationship between board size, independence, diversity and activity with ICDQ.
... Thus, knowledge assets-a result of firms' existing and accumulated knowledge gained through exporting-play a crucial role in determining businesses' learning outcomes through exporting. To extend Cohen and Levinthal's [30] argument that absorptive capability is a key factor in firm innovation, we suggest that firms' knowledge assets, often referred to as "intellectual and knowledge capital" or "intangible resources", are essential resources in innovation [31,32] and value creation [33,34] that lead to productivity growth [20,35]. ...
Using panel data from Korean manufacturing firms, this study empirically investigates how knowledge assets impact the relationship between exports and productivity. We consider a scenario in which firms are situated in a globally competitive, knowledge-based environment. We establish a dynamic panel vector autoregressive model by considering the outcomes of various panel framework tests. A generalized method of moments estimator is employed to test the dynamic relationships among the variables, and a post-estimation test, Granger causality test, and impulse response test are performed. Our findings indicate the existence of a learning-by-exporting effect on the enhancement of total factor productivity (TFP). The result show that TFP can be improved by interacting with exports and knowledge assets, and that firms’ knowledge assets significantly and positively affect their exports. However, industry competition, as an external force, does not contribute to boosting firms’ productivity. We highlight the importance of continuously upgrading productivity, exports, knowledge assets, and industry competition by demonstrating that the present levels of these elements serve as the main source of their own future values. Finally, the implications of our results are outlined.
... The Master Budget does not take any account of investments in intangible assets, although these are more and more central to corporate success in the twenty-first century (Daum, 2002;Power, 2001). Intangibles are not envisaged by the Master Budget, mostly because it is difficult to price them and estimate the cash flows that can be ascribed to them (Zambon, 2016). It is albeit necessary to estimate the necessary disbursements and their plausible outcome. ...
This chapter addresses product life cycle accounting and how target costing requires that the whole value chained be conceived and engineered. Depending on the stage of a product in its life cycle, different issues appear as strategic and therefore deserve to be accounted for. But also, the well-known notion of cost takes on different forms and shapes at each stage, requiring specific accounting systems each time. Building upon marketing research, this chapter shows how a management accounting system remains pertinent by adapting to momenta in product life cycle.
... È agevolmente comprensibile come un siffatto percorso agevoli, altresì, lo sviluppo di nuova conoscenza, l'emersione della knowledge organizzativa e l'avvio di reciproci processi di apprendimento su base relazione tra le aziende ed i relativi clienti e fornitori (Zambon, Marzo, 2007;Girella, Zambon 2013). Quanto sopra equivale a dire che il rispetto di parametri etici lungo dimensioni di sviluppo parallele a quelle economiche comporta un miglioramento delle risorse intangibili aziendali a valere sulla competitività futura (Onesti et al., 2010). ...
Nell’attuale fase dell’economia della conoscenza, i Knowledge Intensive Business Services rappresentano una categoria di aziende la cui importanza è destinata ad aumentare rapidamente, giacché il loro scopo primario è agevolare i processi di generazione, trasferimento, espansione e valorizzazione delle conoscenze a fondamento delle risorse immateriali di cui dispongono o alle quali possono accedere le altre unità economiche. Il presente contributo delinea le principali modalità attraverso le quali i KIBS supportano i processi di sviluppo delle aziende e la loro capacità competitiva.
... The analytical phase consisted of a two-step approach: 1) an exploratory factor analysis (Zambon et al., 2007), and 2) multiple regressions to estimate the influence of IC on Dominican firms' performance. The EFA was performed using the method of principal components with VARIMAX rotation, intended to reduce the number of variables and group them into components, which could explain the variability of each IC component (Bontis, 1998). ...
This paper analyses 64 variables related to the intellectual capital of manufacturing and service firms in the Dominican Republic. In addition, the study included 10 control variables related to firms' characteristics, and 10 variables related to firms' performance, for a total of 84 variables. The main findings show that business performance in manufacturing firms relies mainly on relational capital and depends to a lesser extent on human capital, and that innovative performance depends on a closer relation between human and structural capital. In the case of service firms, both business and innovative performance rely on structural and relational capital, indicating the role of suppliers as a potential source of innovations.
... Following an instrumental orientation visualizing of intangibles are analysed. These refer to assets or resources, intellectual capital or cognitive property, but also unconscious structures and processes, which are identified, measured, reported and thus appropriated for their economic benefits (Epstein and Mirza 2005 ;Kristandl and Bontis 2007 ;Zambon and Marzo 2007 ). However, as Davison and Warren ( 2009 ), showed, a visual analysis of intangible values is not reflected in accounts. ...
Vision, visional relationships and visuality, a corresponding visual culture (Campell & Schroeder 2011; Fuery & Fuery, 2003) as well as visual consumption (Schroeder, 2005) are playing an increasingly important role in the present societal and economic context as well as in organisational and managerial life-worlds. Apparently we are living - and organisations are situated - in a visually over-saturated culture (Gombrich, 1996) moving in the light and shadows of a visual or pictorial turn towards an intensifying and ambiguous ocularcentric orientation (Jay, 1993; 2002; Mitchell, 1994; 2005b).
Despite the proliferating of powerful visual forms and relationships, the influence and production of various images or impacts of visual technologies in everyday-working-life and research on visuality and visual culture seem to be peripheral in the study of organisations. Partly this may also be caused by the self-image about what organisation studies are about, that is to its identity, ‘object’ and methodologies.
The phenomenon of vision and concepts of visualities are com- and implicated experiences and notions, with a long history of contested philosophical and scientific thinking and analysis, with regard (sic!) to their ontological and epistemological status. Due to specific orders of visibilities, members of and entire organisations are framed in a certain way of looking. For exploring the conditioning and possible disclosure of visibility in organisations the following contribution takes a phenomenological approach. Phenomenology aims to investigate the very conditions of possibilities for and processes of appearance of phenomena and reality. Especially, it tries to reveal the visual or pictorial difference between what appears and how something appears or becomes visible as something as well as the interplay between these two modes and considering the invisible. Following a phenomenological perspective, this chapter discusses specifically the status, distinct qualities and entwinement of visuality and the invisible in organisational life-worlds and how they function together as sources of perceiving, knowing, performing and understanding in and about organisations.
For understanding vision, first epistemologies of the eye and the act of seeing as performative practice will be briefly presented. For concretising them the role of objectifying vision as well as concrete practices of seeing in organisation are critically discussed.
... Since its introduction, the impairment method raised major theoretical and practical controversies (Mard et al. 2002.;Romano 2004;Nova 2006;Lionzo 2007;Zambon and Marzo 2007) (Churyk 2005;Dauangploy et al. 2005;Beatty and Weber 2006;Hayn and Hughes 2006), but it was only after the burst of the latest severe crisis of financial markets, in the second semester of 2008, that the capitalisation and impairment check policy suddenly showed its darker side: the risks for possible significant impairment losses. Subsequently, while regulators were recommending more and more attention for the application of IAS/IFRS disclosure requirements (Banca d'Italia -Consob - Isvap 2009Isvap , 2010 and previously accepted interpretations of the IAS 36 impairment test procedure were being reviewed (Guatri and Bini 2009a), in order to find alternative solutions to the recognition of notable impairment losses, the number of accounting scholars and practitioners criticising the IAS/IFRS capitalisation and impairment check policy and asking for its modification has increased. ...
The research aims at observing the actual effects on companies’ consolidated financial statements of the accounting treatment for goodwill as provided for by IAS/IFRS accounting standards. For this purpose, it focuses on the relevance of goodwill values in companies’ accounts (which is mainly investigated through a set of three ratios, comparing goodwill values with the total shareholders’ equity, with the total assets book value and with market capitalisation) and on the dynamics of stated goodwill values through time (observing the changes of the relevance ratios and separately analysing the effects on goodwill values of: impairment losses, mergers & acquisitions, adjustments to provisional values, dismissals, exchange differences, and other or not specified determinants).Empirical evidences from the 350 consolidated financial statements of the 70 largest Italian listed companies for the five years 2005-2009 showed that the IAS/IFRS accounting treatment for goodwill is determining an endemic process of progressive accumulation of goodwill values in companies’ consolidated financial statements, with the capitalisation of massive goodwill values when M&As are concluded, while impairment losses tend to be insignificant, even in the presence of adverse conditions of financial markets and real economy. Looking at its actual effects on companies’ accounts, the IAS/IFRS goodwill accounting treatment appears to be at least as equally unsatisfactory as the previous treatments it has replaced.
... It is the intangible components that generate much of the qualitative feedback and rich information flows that alert managers to emerging problems and facilitate speedy solution finding. By definition, intangibles are those elements which are knowledge-based, are often referred to as intellectual capital, and as such don't take a physical form (Zambon and Marzo 2006; Lev 2000). Nevertheless they may result in profound physical, economic and social outcomes. ...
Environmental management systems (EMS) are specifically designed to instruct organisations in the management of environmental impacts, and are considered by many to be the most valuable tool for building a sustainable future. However, because EMS are hinged to best practice and existing leading technology, they tend to lock-in current thinking. This is problematic for businesses such as airports, which are increasingly looking towards future solutions to emerging and intransigent issues such as noise, CO2 emissions, congestion and safety. Ways need to be found for EMS to balance existing knowledge frameworks with creative and experimental ideas and constructs. As the central information source for EMS, indicators are key to the evolution of their design. This article explores ways of creating indicators that transcend the constraints of existing measuring, monitoring and reporting regimes to facilitate more sustainable airport futures. Accordingly, the article has three objectives. Firstly to demonstrate that EMS for airports have significant scope for improvement. The second objective is to show that rethinking what indicators are and do is fundamental to realising that improvement. And finally, the argument for sustainability-prioritising, contextually constructed indicators that build on current best practice by encouraging innovative institutional learning and reform is the best way of advancing more sustainable airports.
... Various definitions of intangibles are reviewed from various perspectives by Kaufmann and Schneider (2004), Choong (2008), and Zeghal and Maaloul (2011). These definitions appear to share at least one common point: They all insist that intangibles lack clear-cut marketability, they are often not physical or legal objects (i.e., they lack any material or legal form), and they are not financial assets (i.e., they do not provide any legally enforceable revenue stream), but they can provide substantial future benefits (Zambon and Marzo, 2007; Kim 2007). Accordingly, intangibles appear to be related to the congeries of the specific economy of the business firm over time. ...
When capital markets are assumed to be (informationally) efficient and the firm a mere collection of marketable resources, corporate governance and accounting are expected to be primarily concerned with making corporate insiders sensitive to external pressure: financial reporting and the board should replicate the market in the context of the firm. In particular, no firm-specific information is required to perform an effective control: independence of board members is the best quality to assure the monitoring of corporate insiders. However, whenever intangibles become significant, firm-specific information becomes as important as market prices to gauge the past and future performance of the business firm. Specific knowledge of the firm is then required to both disclose high-quality information and monitor corporate executives. This argues for the role of improved historical-cost accounting systems coupled with non-independent, proficient board members.
The paper aims to measure, using the VAIC model, the impact of intellectual capital and its elements on the financial performance and sustainable growth of Turkish ICT companies listed on the Istanbul Stock Exchange (ISE). Panel data regression was used to analyse 31 Turkish ICT companies’ activity for 2019-2022. To measure the relationships between financial performance, sustainable growth and its determinants, sixteen functional models were developed, the formation of which was based on the following types of used dependent variables – Return on Assets, Return on Equity, Return on Sales, Sustainable Growth Rate. Ten independent variables were used, such as VAIC, Modified VAIC, Capital Employed Efficiency, Human Capital Efficiency, Structural Capital Efficiency, Research and Development Capital Efficiency, Relational Capital Efficiency, Leverage, Size, and Dummy Variable for Subbranch. The findings expand the understanding of the importance of intellectual capital management in generating enterprise value and providing sustainable advantages by high-tech companies in the context of forming a knowledge-based economy. The regression analysis of the impact of VAIC and its structural components on Turkish ICT companies’ financial performance and sustainable growth showed rather contradictory results. The most significant effects on the financial performance of Turkish ICT companies and sustainable development are Return on Assets – VAIC, Modified VAIC, Human Capital Efficiency, Research and Development Capital Efficiency, Leverage, Dummy Variable for Subbranch; Return on Equity – Human Capital Efficiency, Leverage; Return on Sales – Human Capital Efficiency, Leverage, Structural Capital Efficiency, Size; and Sustainable Growth Rate – Research and Development Capital Efficiency, Capital Employed Efficiency, Leverage. The expediency of increasing investments in the development of experience and professional skills of employees of Turkish ICT companies, as well as strengthening their innovative activities, which will ensure the growth of their profitability in the short term, have been substantiated.
Financial accounting, the core of corporate reporting, is often characterized as the ‘language of business’. Over the last roughly 100 years, and using an evolving set of theories, methods, and data, scholarly work in this area has been contributing to our understanding of this language and how to improve it. This paper seeks, first, to characterize the field with a focus on its evolution in the German-speaking area, where, like elsewhere, normative research traditions interested in improving practice have been making way for positivist approaches that seek a detached understanding of ‘what is.’ Second, we discuss the changing users and institutional parameters that are reshaping corporate reporting, followed by our personal view of ‘wicked’ societal problems and challenges that corporate reporting might be able to help alleviate. Finally, we discuss directions in which research might evolve in order to address these issues, in order to make corporate reporting more useful for serving not only economic actors, but also society and the environment more broadly.
Розглянуто особливості трансформації економіки в умовах переходу до постіндустріального суспільства. Визначено напрями впливу економіки знань на діяльність підприємств та системи бухгалтерського обліку. Ідентифіковано існування нових інформаційних потреб та запитів щодо інноваційної діяльності підприємств. Розкрито концептуальну проблему обліку інноваційного капіталу підприємства. Виявлено обмеженість бухгалтерського обліку в розкритті інформації про інноваційну діяльність підприємства та її вплив на функціонування інших управлінських систем. Обґрунтовано необхідність удосконалення інформаційної підтримки прийняття інвестиційних та позикових рішень щодо інноваційного капіталу підприємств. Виявлено та проаналізовано причини використання консервативного підходу розробниками облікових стандартів до бухгалтерського обліку інноваційної діяльності підприємств. Встановлено необхідність розвитку теоретико-методологічних засад обліку інноваційної діяльності підприємств з метою удосконалення системи її інформаційного забезпечення для внутрішніх та зовнішніх стейкхолдерів.
The study aims to determine the effect of sustainability reporting and intellectual capital disclosures on the value of mining companies listed on the Indonesia Stock Exchange in 2016-2020. This research used a purposive sampling technique in taking the sample using several relevant criteria. Obtained 35 observations as a research sample. The analysis technique used is multiple linear regression. The results of the study explain that the variable disclosure of sustainability reporting and intellectual capital has a positive and significant effect on firm value. Keywords: Disclosure of Sustainability Reporting; Intellectual Capital; Firm Value.
An intangible is a non-monetary asset that manifests itself by its economic properties. It does not have physical substance but grants rights and economic benefits to its owner. The examination of the general approaches of the valuation of companies is preliminary to the estimation of assets such as the intangibles. Intangibles are more specific than other assets and incorporate higher information asymmetries, linked to higher risk profiles and lower collateral value. Their accounting is controversial, privileging prudence over substance. The most widely used approaches of assessing intangibles are based on market, income, or cost-related metrics.KeywordsIntangiblesImmaterialIntellectual capitalFirm evaluationDiscounted Cash FlowRoyaltyGoodwillCost approachIncome approachMarket approachIVS 210OECD Transfer Pricing GuidelinesResource-based ViewComparablesTobin Q
Intellectual capital (IC) is an important tool for strengthening a firm’s competitive advantage and helping it achieve its medium- and long-term financial objectives. Currently accepted accounting principles do not outline strict rules and regulations for IC disclosure. However, the advent of integrated reporting offer firms an innovative tool to provide this information. Although previous research has analysed the IC information within integrated reports, no studies have analysed the role of the ownership structure in IC disclosure policies. This study aims to fill this gap by analysing the influence of four characteristics of the ownership structure: ownership concentration, managerial ownership, institutional ownership and government ownership. To this end, this study uses an agency theory perspective, develops a new scoreboard to measure the IC disclosure and conducts a regression analysis. The results demonstrated a negative effect of ownership concentration, managerial ownership and state ownership. Furthermore, they have showed a non-significant influence of institutional ownership on the quality of IC information. To our knowledge, this is the first study that analyses the role of ownership structure in the IC disclosure policies after the advent of integrated reporting.KeywordsIntellectual capitalDisclosureIntegrated reportingOwnership structureAgency theory
An intangible is a non-monetary asset that manifests itself by its economic properties. It does not have physical substance but grants rights and economic benefits to its owner. The examination of the general approaches of the valuation of companies is preliminary to the estimation of assets such as the intangibles. Intangibles are more specific than other assets and incorporate higher information asymmetries, linked to higher risk profiles and lower collateral value. Their accounting is controversial, privileging prudence over substance. The most widely used approaches of assessing intangibles are based on market, income, or cost-related metrics. Hard-to-value intangibles are based on innovative business models, whose value drivers are difficult to analyze and compare.
An intangible is a non-monetary asset that manifests itself by its economic properties. It does not have physical substance but grants rights and economic benefits to its owner.
The examination of the general approaches of the valuation of companies is preliminary to the estimation of assets such as the intangibles.
Intangibles are more specific than other assets and incorporate higher information asymmetries, linked to higher risk profiles and lower collateral value. Their accounting is controversial, privileging prudence over substance.
The most widely used approaches of assessing intangibles are based on market, income or cost-related metrics.
Hard-to-value intangibles are based on innovative business models, whose value drivers are difficult to analyze and compare.
Keywords: Intangibles · Immaterial · Intellectual capital · Firm evaluation · Discounted Cash Flow· Royalty · Goodwill · Cost approach · Income approach · Market approach · IVS 210 – OECD Transfer Pricing Guidelines – Resource-based View – comparables – Tobin Q.
In management studies, the relevance of intellectual capital (IC) in value creation processes has been a research topic for many years. Several attempts have been made to develop measurement and reporting systems for this relevant source of value, but managerial literature has highlighted the limits and difficulties of some of those endeavors. Integrated reporting, the general purpose of which is to provide transparent and integrated disclosure, has also entered this field with the aim of improving disclosure of intangibles, along with a strategic perspective on communication. An accurate description of a company’s IC is indeed one of the focal elements of an integrated report. This paper describes an exploratory study based on the case study research method of three companies, all of which have applied the integrated reporting IIRC framework and are operating in different business contexts. Following a performative approach, the first aim of this work is to verify the ability of integrated reporting to support the mobilization of IC and to encourage companies to take advantage of this process. This should lead to positive effects on management and governance practices, with respect to both external and internal users. Additionally, from a critical and performative perspective, this research investigates how business context influences the processes of measurement, management, and reporting of IC.
Particular attention must be paid to the institutional structure of the agricultural production based on cooperation. Development of cooperation in agriculture improves the competitiveness, secures
a better availability of means of production and services, helps farmers improve market links and boost efficiency. This on its turn will support the economic growth. Thus, the realization of these measures will undoubtedly yield valuable results, what will contribute to the development of agriculture and improved competitiveness and economic growth of the country. Georgia is able to meet not only the demands of its own people for food, but it can also become the exporter of agricultural foodstuff what will strengthen the country and support higher living standards of the Georgian population.
This chapter introduces the topic of integrated reporting (IReporting) and integrated report (IR), which is one of the new frontiers with implications both in terms of academic researches and management applications, on which the scholars who contribute to the development of the Social and Environmental Accounting Research (SEAR) have been confronted in the recent years. This frontier marks the transition from the financial reporting system to the IReporting systems, involving new trajectories and theoretical and political processes.
We now move to demonstrate a process framework of social responsibility in organizations. After having recognized that irresponsibility is the norm, an organization can start thinking about how to limit the level of such irresponsibility. A first step in this process is the identification of the unknown stakeholders.
In recent decades, several contributions have addressed the debate on the diffusion of the integrated reporting approach. Why would a company decide to combine its financial, social and environmental performance into a single report? Does the integrated report represent the best tool of accountability and the best solution? If so, why and for which companies? Studies and empirical research in this area have been mainly addressed to large enterprises, neglecting the integrated reporting of small and medium-sized business (SMEs) and the factors that may facilitate the adoption and its effectiveness.
With ever increasing amounts of marketplace information, decreasing inter-brand differences, and increasingly complex products, confusion is becoming a global problem for consumers. Although confusion has been identified as a problem for consumers and marketers in many countries most measures of consumer confusion have been developed in western countries, including Walsh et al.'s (2007) consumer confusion proneness (CCP) scale, and have not been shown to be cross-culturally valid. Thus, relatively little is known about the cross-cultural differences in confusion proneness. Using the three-dimensional, nine-item CCP scale developed in Germany, this study explores cross-cultural differences in consumer proneness in the United States as well as in Germany and Thailand. The results reveal that some factor loadings of the CCP scale are not invariant across samples and that unique factor structures emerge for the US and Thai samples. The article concludes by discussing theoretical and managerial implications as well as study limitations.
Assuming a pro-business viewpoint, this book criticizes sustainability and responsibility as it appears in the reports of corporations. It launches an appeal to the representatives of SMEs around the world to make accountability happen in government organizations and monopolies.
Book of Abstract - Governing Business Systems. Theories and Challenges for Systems Thinking in Practice. 4th Business Systems Laboratory International Symposium.
The main purpose of the study was to identify the presence of intuitive decision-making by top
and middle managers in Slovenian automotive industry, to identify the influence of their
behavioral competencies and emotional intelligence on intuitive decision-making, identify their
level of intuitiveness and on the basis of theoretical and empirical research establish
competencies and factors of the model of leadership competencies based on intuitive decisionmaking.
A quantitative approach research was used, using a questionnaire, as a primary instrument to
measure, contains the following structure: (1.) demography, (2.) emotional intelligence (SSEIT–
Schutte Self-report Emotional Intelligence Test), (3.) decision-making styles (GDMS–General
Decision Making Style), and (4) intuitiveness (AIM Survey–Agor Intuitive Management Survey).
Statistical data analysis was carried out using the SPSS program version 21 and MS Excel
version 2007 and the model was created using the program Pajek version 3. The following main
methods were used for research data analysis: descriptive statistics, factor analysis, regression
analysis and variance analysis.
Results of the performed quantitative research show that respondents are often directed by
intuition when making important decisions (79,3% make decisions based on intuition) while
statistically significant differences occur (1.) regarding sex as women on average rely slightly
more on intuitive decision-making than men and (2.) regarding leadership experiences
respondents with the least leadership experiences think they are not led by intuition while all
other respondents think they are led by intuition (more than a fourth). The research findings
indicate that behavioral competencies do not have any significant impact on intuitive decisionmaking
and the same is true for emotional intelligence. Another more significant research finding
shows a relatively high level of intuitiveness as the average result is 7.1 out of 12 points.
Moreover, the research indicates that level of intuitiveness increases with years of leadership
experiences and with higher level of education.
The performed research represent a significant contribution to new knowledge in the field of
management and administration of companies as through implemented model of intuitive
decision-making of top and middle managers in Slovenian automotive industry they involve a
potential practical (applied) value added in respect of management personnel administration in
the automotive industry and in other sectors. Research raises fundamental starting point for
further in-depth and targeted research to other related areas of society. Originality of the research
is featured by the fact that there is no domestic or foreign scientific literature available to
demonstrate any research comprising elements of operationalisation (examination of relationship
between leadership competencies and intuitive decision-making) used in the present research
which confirms its originality.
Limitations of the research are defined in the following contexts: (1.) Limitation of capabilities to
give an overall theoretical retrospective review of individual areas covered by theoretical part of
the research. (2.) Use of standardized measuring instruments of foreign origin and occurrence of
potential differences between the environment where the measuring instruments were designed
and the environment where they have been used. (3) Limitations of capabilities of translation of
measuring instruments regarding words, collocations and phrases pertaining to original
questionnaires for which no adequate Slovenian translations exist. (4.) Use of the method Pajek
which was used in the past research mostly in the field of natural science and networking while
its use in the quantitative research represents a relatively new approach.
Introduction of the IAS/IFRS entails important changes for Italian companies, characterised by civil law accounting culture, including assessment and accounting of intangible assets which is one of the most fundamental issues. Our attention focuses on companies listed in the main Italian Stock Exchange Indexes (S&P/Mib, Star and TechStar) in which the intangible assets are some of the most critical elements of company management. After a brief comparison between IAS 38 and Italian law, the aim of this paper is to study the effects of IAS 38 application on financial disclosure via an empirical analysis. The level of disclosure regarding the intangible assets is summarised via the construction of a " disclosure index " and is studied in greater depth by identification of the possible influencing factors. In the paper the focus is on disclosure since, as the scholars also agree, financial communication does not represent a neutral process but affects the behaviour of the recipients, and consequently that of the preparers. Financial statements as of 31 st December 2005, which are the first IAS/IFRS-compliant documents, will be analysed.
The purpose of the paper is to contribute to the use of evaluator and utility functions in order to increase the reliability of scorecard based intellectual capital (IC) measurement methods and to express and aggregate the utility of IC components to an organization. The conducted field experiment integrates the results of interviews with 23 brand name customers by examining the customer satisfaction measuring practice of service provider companies. Our main finding is that adequately calibrated evaluator functions assign perceived customer satisfaction to its scorecard based measured values and reduce the distortions of scorecard based measurements. The originality of the research lies in expressing and aggregating the utilities of IC components to the organization by interpreting the evaluator function as a kind of utility function. This application allows the joint use of financial valuation and scorecard based measurement in the same performance management system.
This paper studies the role of the accrual process for providing value relevant information on intangibles. Expensing research & development (R&D) expenditures is, by nature, equivalent to cash accounting. Prior studies have found that accrual information has superior explanatory power for market values compared to cash flows (Dechow 1994). We demonstrate, for a sample of German firms, that this also holds true for R&D accounting. By adjusting the earnings we create two samples reflecting R&D capitalization and expensing, respectively. We demonstrate that capitalizing R&D expenditures creates an additional accrual component of earnings which increases the explanatory power of earnings compared to cash flows (expensing) while internalizing ‘other information’ into the accounting system. This explains the higher value relevance of capitalized R&D compared to expensing established in prior research (Lev and Sougiannis 1996).
In this paper, we discuss the implications of the financial crisis for industrial policy. We show that despite official discourse, industrial policy has continued to exist during the liberal years of essentially the 1990s, in order to accompany important structural changes firms had to face. The crisis has implied a massive intervention in the economy, States pouring money into markets in order to provide liquidity and rescuing heavily indebted banks. Intervention has been so strong that now the discussion is about the « exit strategy ». This does not mean, however, that industrial policy has entered a new phase of return to direct intervention in markets. In fact, the risk of the crisis is that the important debate about industrial policy that started at the beginning of the years 2000 be put in the back stage. The debate prior to the crisis was on the role of industrial policy as a long-term programme, a vision of industrial development that has to be implemented through political consensus. This important debate must continue after and beyond the crisis.
ResearchGate has not been able to resolve any references for this publication.