Disclosure of Intellectual Capital Components in Integrated Reporting: An Empirical Analysis

Santis, Serena; Bianchi, Michela; Incollingo, Alberto; Bisogno, Marco

doi:10.3390/su11010062

Cited by 21 publications

(29 citation statements)

References 59 publications

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“…However, very few studies have analyzed and empirically tested the relevance of CSR for IC development (e.g., References [15,27,28,47,48]). Most of the prior research has deepened the relationship between CSR and IC, mainly from an accounting point of view, by focusing on the convergence of CSR reporting and IC reporting (e.g., References [16][17][18][19][20][21][22][23]25]). In his manifesto for transformational IC research, Dumay [26] advises researchers to face new challenges in IC studies by reconsidering the reporting approach to IC, thus soliciting an increasing interest in managing IC and in IC praxis.…”

Section: The Link Between Csr and Icmentioning

confidence: 99%

“…With regard to the relationship between CSR and IC, researchers have specifically shown a prevalent interest in the accounting implications of both CSR and IC reporting (e.g., References [16][17][18][19][20][21][22][23]). Accordingly, the prior studies adopt content analysis as the main instrument of investigation and fail to consider the managerial implications related to the impact of CSR on IC development.…”

Section: Introductionmentioning

confidence: 99%

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Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

et al. 2019

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Using a large sample of public firms in 51 countries during the period from 2010 to 2015 and a two-stage least squares (2SLS) regression with an instrumental variable (IV), this study investigates how corporate social responsibility (CSR) and corporate governance (CG) mechanisms interact to influence a firm's intellectual capital (IC) efficiency. The empirical results reveal that CSR engagement and CG structures influence the firm efficiency in managing IC. This study contributes to managerial practice by demonstrating the causal effect of CSR on value-added intellectual capital (VAIC) measures and the positive impact of CG on both CSR engagement and the efficiency with which firms manage their IC. Furthermore, the current study provides an additional understanding of the relationship among CSR engagement, CG practices, and the determining factors of IC efficiency within a comprehensive framework.Thirdly, by capturing the points of convergence stemming from a stakeholder approach to CSR engagement, CG mechanisms, and IC development, the current paper aims to respond to Dumay's [25] call for a shift of the research focus on IC development from an accounting to a management perspective. Indeed, for Dumay, the CSR engagement represents an important opportunity to expand the research agenda on the management of IC, instead of concentrating on synergies among IC reporting and CSR disclosure.Furthermore, relative to prior literature, the current study aims to advance the methodological design for empirical evidence on the link between CSR, CG, and IC. In particular, we collected longitudinal panel data on a large sample of international public firms for which we have information for the 2010-2015 period. Additionally, our estimates employ the instrumental variable (IV) approach for the treatment of reverse causality. Finally, the econometric models of this paper adopt data on CSR engagement drawing from the Asset4 dataset provided by Reuters. As noted in the previous studies (e.g., Reference [38]), Asset4 generates transparent, auditable, and comparable information for the evaluation of corporate social performance.With the awareness that measuring IC performance is still an open question [18], we estimate the financial contribution of IC performance through value-added intellectual capital (VAIC) by Pulic [39], a model that has been widely used as the primary measure of IC (e.g., Reference [31,[40][41][42]). Consistent with Iazzolino and Laise [43] and relative to the indicators that measure value creation from shareholders' perspective, VAIC measures value creation from the stakeholder perspective and clearly accounts for IC.Therefore, to achieve the objectives of the current study, the remainder of this paper is organized as follows. Section 2 presents the conceptual framework and the hypotheses. Section 3 explains the design of the empirical study. Section 4 summarizes the results. Section 5 provides the theoretical conclusions and managerial implications Finally, Section 6 includes the study's limitations and sugg...

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Section: The Link Between Csr and Icmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

et al. 2019

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“…Undoubtedly, Intellectual Capital encourages wealth creation and high valued properties (Allameh, 2018). According to Santis et al (2019), there are three components of Intellectual Capital, namely relational capital, human capital and structural capital. Both of these foretell the novelty of running business operations that have a significant effect on the company's future.…”

Section: Introductionmentioning

confidence: 99%

Intellectual capital and financial performance of South African development community’s general insurance companies

Olarewaju

Msomi

2021

Heliyon

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The effect of intellectual capital on financial performance was investigated in this paper for the period 2008 to 2019. A total of 696 observations were generated from data collected from 56 general insurance companies in 12 years. The Value Added Intelligent Coefficient Model was used and data was analysed using both static (two stage least square, fixed and random effect) and dynamic panel regression analysis (two step system generalised method of moments). The findings showed a significant and direct relationship between lagged return on assets, intellectual capital and financial performance of insurers in the South African Development Community. Out of the components of intellectual capital, human capital and structural capital are significantly and directly related with return on assets while capital employed is inversely and insignificantly related with return on assets. The control variables-underwriting risk, insurer size and leverage are all inversely and significantly affecting return on assets. Thus, a U-shape relationship exists between intellectual capital and financial performance in general insurance companies in the South African Development Community. Thus, the policy makers-cum-insurers' managers should maximise their intellectual capital as this creates competitive advantage that leads to financial performance drive and wealth generation. The Model used in this study is an important model decision-makers can use to assimilate intellectual capital in their decision-making procedures. This will inadvertently permit insurers to scale themselves according to the intellectual capital efficiencies and advance in strategies that will boost their company's financial performance.

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“…Finally, the extant literature shows that health organisations struggle to manage IC in a strategic and comprehensive way (Vishnu and Gupta, 2015;Mazzotta, 2018). IIRF is weak in Integrated reporting in health organisations linking IC to business processes, as they are seen as a "black box" and not explored in detail (Beattie and Smith, 2013;Santis et al, 2019). Thanks to the third adjustment, business processes are better defined in IIRF and are classified as direct, indirect and support processes.…”

Section: Conclusion Limitations and Further Workmentioning

confidence: 99%

Implementing integrated reporting to disclose intellectual capital in health organisations: a case study

Dameri

Ferrando

2020

JIC

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PurposeThe aim of our research is to give empirical and theoretical solutions to some criticalities of the original International Integrated Reporting Framework (IIRF). Indeed, it takes as value creation only the increase of the capitals triggered by business activities, overlooking the fulfilment of the institutional mission that is the actual value creation lever.Design/methodology/approachThe present paper introduces a case study aimed at implementing the IIRF in an Italian non-profit healthcare organisation. The research is based on theory building from cases, action research and interventionist approach. IIRF was adopted because of its claimed ability to support the communication process to stakeholders and the control of value creation. However, IIRF shows several weaknesses.FindingsAn adjusted version of IIRF is suggested, highlighting the role played by IC in the organisational business model and in the value creation process. The adjusted seems able to foster awareness of the role IC in value creation in healthcare organisations.Research limitations/implicationsIn this paper no one of the singles pieces of the adjusted framework is innovative by itself, but jointly they give raise to an innovative solution, able to address the disclosing and managerial needs of the examined organisation. The single case study permits to us to test the weaknesses of the IIRF claimed in the literature, to suggest some adjustments to the original framework and to validate their effectiveness. Thanks to the single case study we then built theoretical constructs developing theory inductively; now the suggested framework can be further tested and validated in other organisations.Originality/valueThe paper introduces an innovative approach to IC reporting and disclosure in healthcare organisations. This is relevant not only for external communication but also for internal aims supporting managers in decision and actions.

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Disclosure of Intellectual Capital Components in Integrated Reporting: An Empirical Analysis

Cited by 21 publications

References 59 publications

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

Do Corporate Social Responsibility and Corporate Governance Influence Intellectual Capital Efficiency?

Intellectual capital and financial performance of South African development community’s general insurance companies

Implementing integrated reporting to disclose intellectual capital in health organisations: a case study

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