Given the nature and importance of Islamic banks in recent times, we can expect them to have significant intellectual capital anchored in their Sharia‐based knowledge and expertise. However, we know very little or nothing about how and why intellectual capital‐related information is provided in their corporate reports. We fill this gap in our existing knowledge of the field with a view to enhance relevant literature. As far as we know, this article is one of the earliest (...) exploratory attempts to examine intellectual capital reporting practices of an Islamic bank. We have undertaken a longitudinal (2001–2015) case study related to the intellectual capital reporting practices of an Islamic bank. Key results include significant rise of intellectual capital reporting over time, dominance of internal capital‐related items in intellectual capital reporting profile and the dynamics of changes in intellectual capital reporting practices over time. Through an institutional theory lens, we explain that this is due to the changes in the external institutional environment and various intra‐organisational factors such as strong ethical culture, unique knowledge base (Sharia), and corporate governance regime. (shrink)

In management literature, intellectual capital is considered the key driver of the competitive advantage of the third millennium enterprise firm; consequently, measuring, managing and reporting IC has become a critical issue. Frameworks addressed to measure and report IC have proliferated, nevertheless the adoption of these frameworks is not so widespread in practice. The strong call for critically investigating IC practices has been raised by several leading authors in the area. Doing a critical and performative IC research means (...) empirically researching IC organisational practices in specific contexts, in order to increase the understanding of the IC dynamics. By critically analysing the IC practices of ANPAS Piemonte, an Italian non-profit organisation chosen for its long-standing experience in issuing audited IC reports, the article contributes to the knowledge of how and why IC is measured and reported in a specific, outstanding NPO disclosing IC. Moreover, the case study analysis contributes to shed lights on the levers and barriers that should be faced by other managers intending to implement and effectively use an IC measurement, management and reporting system within organisation. (shrink)

This study aims to examine how the relationship between intellectual capital and bank profitability changed during COVID-19. Based on the data of 34 Chinese banks and 39 Pakistani banks, this study uses ordinary least squares to examine this relationship during the COVID-19 era. Profitability is measured by return on assets and return on equity, and IC is measured by the value added intellectual coefficient model. The findings show that, even during the COVID-19 pandemic, IC has managed to (...) sustain its positive influence on bank profitability in China and Pakistan. Among IC components, our study reports that human capital is the only IC resource that continues to enhance ROA and ROE of Chinese and Pakistani banks during the pandemic period. Our study suggests that policymakers should pay more attention to IC resources, which has the potential to improve banks’ profitability even during crisis times. (shrink)

This paper explores by means of content analysis the extent to which the Finnish biggest companies have adapted socially responsible reporting practices. The research focuses on Human Resource (HR) reporting and covers corporate annual reports. The criteria has been set on the basis of the analysis of the documents published at the European level in the context of corporate social responsibility (CSR), paying special attention to the European Council appeal on CSR in March 2000. As CSR is a (...) relatively new concept in Finland, the paper also contributes to the discussion on interface between HR reporting (especially as based on measurements such as Human Resource Accounting and Intellectual Capital schools) and corporate social reporting practices. The results of the content analysis indicate that social reporting practices are still at an early stage of development in Finland. The most reported theme was ‘training and staff development’. A positive sign was that the majority also disclosed themes ‘participation and staff involvement’ and ‘employee health and well-being’. Furthermore, nearly one-third made references to their work atmosphere or job satisfaction survey. However, disclosures lacked overall consistency and comparability with each other and especially quantitative indicators were disclosed by few. Further concern was lack of information related to the theme equal opportunities and going beyond a sheer disclosure of age or gender structure. The other issues rarely disclosed were those related to employee work–life balance and integration of disadvantaged groups in the labour markets. (shrink)

Our study analyses the nature, quality and extent of human resource disclosures of UK Financial Times Stock Exchange 100 firms by relying on a novel disclosure index measuring the depth and breadth of disclosures. Contextually, we focus on the 5-year period following the then Labour government’s attempts to encourage firms to formally report on their human resource management practices and to foster deeper employer–employee engagement. First, we evaluate the degree to which companies report comprehensively on a number of HRD items (...) that we classify as “procedural” or “sustainable.” Second, we hypothesise that a company’s employee relation ideology is positively associated with HRD. Our results indicate that: whilst there has been an increase in the breadth of HRD in terms of procedural and sustainable items being disclosed, the evolution towards a more comprehensive and in-depth form of HRD remains rather limited; and there is a positive association between a company’s employee relation ideology and the level of HRD. Theoretically, we conceive of HRD both as a reflection of an organisation’s orientation towards a key stakeholder and a legitimacy seeking exercise at a time of changing societal conditions. We contribute to the scant literature on the extent and determinants of HRD since prior research tends to subsume employee-related disclosures within the broader concept of social, ethical or intellectual capital disclosures. We also propose a disclosure checklist to underpin future HRD research. (shrink)

Intellectual Capital is a driving force behind the financial performance of non-financial firms. Investing in intellectual and physical capital allows companies to optimize their financial performance by maximizing resource utilization. This study aims to determine whether IC efficiency impacts the financial performance of listed Pakistani and Indian companies between 2010 and 2020. Return on Assets and Return on Equity are used to calculate financial performance, and IC is calculated using the modified Value-Added Intellectual Coefficient model. (...) Regression analysis is performed using the STATA software developed by the South Texas Art Therapy Association. Human Capital, Structural Capital, and Capital Employed have a significant impact on Pakistani and Indian firms’ financial performance. Resource-based theory supports these findings. The findings should provide management with a prompt to improve financial performance and emphasize the importance of IC. A rare study has addressed the impact of IC on firm financial performance using the MVAIC model, rather than the VAIC model, in Pakistan and India. (shrink)

This paper is intended to investigate the role of Venture-Capital Syndication background in the relationship between intellectual capital and portfolio firm performance ; specifically, this article examines the moderating effect of VCS’s leading firm background and member heterogeneity on the effect of IC on PFP. This study used a modified VAIC model to measure IC to compose a 4-component variable including human capital, structural capital, relational capital, and innovation capital. The data were collected (...) from VCS-backed and listed firms in China during 2014 to 2018 applying the pooled OLS model for hypotheses test, Generalized Method of Moments to reduce endogeneity and unobserved factor control, and also return on equity instead of ROA for the robustness test. Empirical results showed that IC and its components can improve PFP for VCS-backed firms in China; in detail, IC showed greater impact on performance of firms invested by foreign lead investors than in private or government VCS, specially reflected in the impact of innovation capital on PFP. Furthermore, IC showed weaker impact on PFP of mixed VCS-backed firms compared to pure VCS-backed firms and showed diminished effect on higher VCS member heterogeneity mainly reflected in the impact of relational capital on firm performance. These findings propose a new way of combining IC and VC to improve firm performance and are beneficial to theoretical development of IC and VC as well as a perspective for VC firm managers to choose suitable partners prior to join a VCS. (shrink)

This study investigates the impacts of intellectual capital through Value-Added Intellectual Capital (VAIC) and its components: human capital efficiency (HCE) and structural capital efficiency (SCE) on financial performance in terms of return on assets (ROA) and return on equity (ROE). In addition, this study compares the effects between firms from financial and pharmaceutical industries. A total of 149 Vietnamese firms comprising of 108 financial firms and 41 pharmaceutical firms were examined. Based on the findings, (...) VAIC and HCE show beneficial impacts on both financial performance measures, ROA, and ROE. However, SCE shows adverse and beneficial implications on ROA and ROE, respectively. In terms of industry comparison, VAIC has positive effects on ROA and ROE among the firms from financial industry, whereas it has no effect in the firms from pharmaceutical industry. The effect of HCE on ROA is stronger in the firms from financial industry than firms from pharmaceutical industry while the effect of HCE on ROE is stronger in the firms from pharmaceutical industry than firms from financial industry. The effect of SCE on ROA is stronger in the pharmaceutical firms than financial firms while the effect of SCE on ROE is stronger in the financial firms than pharmaceutical firms. Lastly, the implications of the importance of knowledge-based resources on value creation were elaborated. (shrink)

The article attempts to present a thorough analysis of intelectual property, as main property of a modern company, from the perspective of private law. The article anlyzes the essence of the intangible resources that form the intellectual capital and discusses whether the modern institutes of law allow the universal protection of companies‘ intellectual capital. The first part of the article analizes the conception of intangible resources and provides their qlassification. The second part of the article discusses (...) the understanding of intellectual capital and importance thereof to modern companies. In the third part of the article, the possibility to financially account all intellectual property of a company is analyzed. The forth and fifth parts of the article reveal the possibilities of legal protection of intellectual capital. The law on intelectual property is not sufficient to protect all intelectual capital because it protects only that part of intangibles, which become the onjects of the intelectual property. (shrink)

We are pleased to inaugurate a new feature to appear three times annually. “Capital Report” is designed to keep readers abreast of bioethics debates in Congress, federal agencies, and other branches of the federal government. Tabitha M. Powledge, a former Center associate, brings to the Report her experience as founding editor of The Scientist and as editor of AAAS Observer. Ms. Powledge is currently a contributing editor to Issues in Science and Technology.

Appropriate enablers are essential for management of intellectual capital. Through the use of structural equation modeling, we investigate whether organic renewal environments, interactive behaviors, and trust are conducive to intellectual capital management processes, as they each depend upon the establishment of a climate emphasizing mutual respect. Owing to a lack of clarity in the literature, we tested the ordering of the variables and found statistical significance for two ordering alternatives. However, the sequence presented in this article (...) provides the best statistical fit: an organic renewal environment provides a foundation for interactive behaviors, which leads to trust, and thus is consistent with the development of intellectual capital management pro- cesses within the organization. (shrink)

There is arguably no award more recognized in the academic and professional worlds than the Nobel Prize. The public pays attention to the prizes in the fields of economics, literature, and peace because their recipients are identified with particular ideas, concepts, or actions that often resonate with or sometimes surprise a global audience. The Nobel Prize in Economic Science established by the Bank of Sweden in 1969 has been granted to 64 individuals. Thomas Karier explores the core ideas of the (...) economic theorists whose work led to their being awarded the Nobel in its first forty years. He also discusses the assumptions and values that underlie their economic theories, revealing different and controversial features of the content and methods of the discipline. The Nobelists include Keynesians, monetarists, financial economists, behaviorists, historians, statisticians, mathematicians, game theorists, and other innovators. (shrink)

To demonstrate how green innovation effectively occurs, this study examines the effects of green intellectual capital on GI from the perspective of green supply chain integration. Based on a natural-resource-based view and knowledge-based view, the authors constructed an intermediary model of GIC-GSCI-GI, and analyzed the effects of green absorptive ability and relationship learning ability as moderators. An empirical survey of 328 Chinese manufacturing companies was conducted. Our results indicate that three dimensions of GIC positively impact GI. The mediating (...) effects of internal and external GSCI exist in the relationship between GIC and GI. The moderating effects of GAA and RLA in these effects were also verified. Our study provides further empirical evidence for the relationship between GIC and GI, highlights the effects of companies’ internal and external abilities on GI, and suggests new ways and implementation contexts for GI. (shrink)

The basic purpose of this study is to analyze the impact of intellectual capital on corporate financial performance. This study is conducted on pharmaceutical sector listed in Pakistan Stock Exchange. Data for this study was collected from audited annual financial statements of selected business organizations over period of ten year i.e. from 2005-2014. Value Added Intellectual Coefficient methodology is employed, in order to measure IC and its different components. The firm’s financial performance is measured by using profitability (...) measures including ROE and ROA, market to book value and asset turnover. In order to analyze the collected data, the Partial Least Square, a SEM technique. These approaches are used to assess the measurement and structural models. The results of analysis have supported the proposed hypothesis i.e. there is significant positive impact of intellectual capital on firm’s financial performance among pharmaceutical industries of Pakistan. (shrink)

Economic and social activities are undergoing radical changes, which can be labelled as ‘knowledge economy and/or society’. In this sense, intellectual capital, or knowledge assets, as the fourth factor of production, is replacing the other ones – job, land and capital. This article tries to offer the origins and nature of the firm’s IC that can be labelled as ‘An Intellectual Capital-Based View of the Firm Competition’. This framework tries to highlight the strategic role of (...) different intangible assets like talented and committed workers, cultural values, or long-term relationships among the firm and its stakeholders – customers, allies, suppliers and society in general – in gaining and sustaining competitive advantages, being the management of IC a key issue in the management agenda. (shrink)

No research explored intellectual capital about green innovation or environmental management. This study wanted to fill this research gap, and proposed a novel construct – green intellectual capital – to explore the positive relationship between green intellectual capital and competitive advantages of firms. The empirical results of this study showed that the three types of green intellectual capital – green human capital, green structural capital, and green relational capital – (...) had positive effects on competitive advantages of firms. Moreover, this study found that green relational capital was the most common among these three types of green intellectual capital, and the three types of green intellectual capital of Medium & Small Enterprises (SMEs) were all significantly less than those of large enterprises in the information and electronics industry in Taiwan. In sum, companies investing many resources and efforts in green intellectual capital could not only meet the trends of strict international environmental regulations and popular environmental consciousness of consumers, but also eventually obtain corporate competitive advantages. (shrink)

The aim of this article is to analyse the internal mechanisms of corporate governance (board of directors and ownership structure), which influence voluntary disclosure of intangibles. The results appear to corroborate the view that an increase in institutional investor shareholding has a negative effect on voluntary disclosure, supporting the hypothesis of entrenchment, whereas an excessive ownership by institutional investors may have adverse effects on strategic disclosure decisions. The results also indicate that an increase in the number of members of the (...) board to up to 15 has a beneficial effect on the disclosure of intangibles. However, as this number increases, the effect inverts and becomes adverse to improving the capacity for supervision and control in the decision-making process regarding the voluntary disclosure of intangibles. The findings endorse the recommendation of the most of the Corporate Governance Codes regarding an advisable maximum of 15 members on a board to ensure its effectiveness and internal cohesion. (shrink)

This research, couched in the resourcebased view of the firm, investigates the potential for reducing an organization's decision uncertainty within its structural equation modeling, we empirically test if organizational design can reduce the perceived uncertainty related to an IC context, which we refer to as knowledge uncertainty. We found evidence that decentralization and technology infrastruture support a resultsbased IC mangement contrl system which in turn is associated with reduced support a good overall fit for our model. Our findings suggest that (...) if managers structure their organizational control systems appropriately for developing IC capabilities, these systems can lead to reduced internal uncertainty regarding human, structural, and relational capital. (shrink)

The Assess Model of Intellectual Capital and a Company's Value Added Cohesion Nowadays intangible assets are especially important in every company and can help to increase a company's value added. The importance is so huge that many companies invest more money in intellectual capital than in material assets. Why has this happened? Scientists answer this question very quickly and easily - many companies have already been disappointed and damaged by their materials, goods, equipment, buildings, cars, machinery (...) that cost a lot of money but do not give effective productivity. On the contrary, intellectual capital that usually costs only the salary of an employee brings significant benefits. The research purpose is to evaluate the cohesion between intellectual capital and a company's value added and to provide the model of this cohesion. The methods used are analysis of scientific literature, GBN matrix method, expert evaluation, average comparison method, and Kendall's coefficient of concordance. Scientific aims: to reveal the cohesion between intellectual capital and a company's value added; to introduce a model of a company's value added and its intellectual capital; to demonstrate the results of expert evaluation on the model of intellectual capital and a company's value. The findings are as follows: intellectual capital is considered as a unit of social capital, communicational capital, and psychological capital; intellectual capital has a huge influence for the growth of a company's value added; employee motivation is the most important factor either for the growth of intellectual capital or a company's value added. Conclusions: expert evaluation was performed in order to investigate the importance of intellectual capital factors for the growth of intellectual capital itself and a company's value added. Experts were taken from two areas: business environment and academic environment. It is possible that experts from other environments could answer the questions in a completely different way, and this model could be improved even more. (shrink)