Search

Purpose: The paper deals with the issue of intellectual capital (IC) and its disclosure in the financial statements and other parts of annual reports of FTSE 100 entities. The paper aims to identify the determinants that influence entities to reveal IC related information and to highlight the theoretical aspects behind such determinants, resulting in comprehensive findings. The results of the analysis can be used to understand what leads entities to make decisions in the field of non-financial disclosure and help in the development of the IC reporting framework. Design/methodology: The research is devoted to the analysis of the relationship between the level of IC disclosures by companies and the analysed determinants - size, asset structure, profitability, industry and the factor of time. The dataset can be characterised as a panel data set containing 100 firms from the FTSE100 Index for the four most recent financial years (2018-2021). To produce a comprehensive set of results, descriptive statistics are used, followed by regression and correlation analysis. The random effect method is used as it has a higher predictive power than pooled OLS and fixed effect methods in analysing panel data. Findings: Based on the results of the analysis, it was concluded that the profitability measured as ROA is not a key factor of intellectual capital disclosure in the annual reports of FTSE 100 companies. From the point of view of size, there exists a statistically significant relationship between total assets and all components of IC, respectively overall IC. The analysis also showed a statistically significant impact of the sector in which companies operate. Particularly, companies in the service sector report more information on human capital and companies in the high-tech sector report more information on structural capital. A significant effect of asset structure was found for structural capital but only taking into account the effect of goodwill, not through the effect of other intangible assets. Finally, the paper demonstrated a positive and significant effect of the time factor on the level of reporting of all IC components. Originality/value: This paper focuses on the determinants influencing the level of IC reporting in a representative sample of entities from the highly active FTSE100 Index, which provides a very recent and specific data sample from a research perspective. The paper is based on determinants that are frequently reported in existing research, and it extends the scope by incorporating the effect of intangible assets and goodwill as variables representing the asset structure in addition to the effect of time. This paper presents statistically based results on the relationships between the determinants and IC but also between the different elements of IC (human capital, structural capital and relational capital), which provide insights into the structure of reported information on intellectual capital. This insight is very substantial given that many studies ignore the characteristics of the different components of the IC as they may be affected by different determinants. [ABSTRACT FROM AUTHOR]

The tourism industry has grappled with the challenges posed by the onset of the coronavirus disease (COVID-19) since the start of 2020, experiencing a complete lockdown that profoundly affected travel activities. This viral outbreak had a critical impact on both the financial and non-financial aspects of life, including the intellectual capital (IC) of the tourism and hospitality sectors. However, there is a scarcity of studies addressing this issue within the context of tourism-related businesses. Thus, this paper aims to investigate the changes in the overall IC and its components before and during the COVID-19 pandemic, with a specific focus on understanding the transformation of IC in the tourism industry of Thailand, a country that is highly dependent on tourism. The study involved 37 tourism-related companies listed on the Stock Exchange of Thailand (SET). Organizational data from financial and annual reports published between 2019 and 2020 were collected for analysis. The assessment of value added intellectual capital (VAICTM) was employed to evaluate the performance of the overall IC and its components during the pandemic. The results, based on the testing of four hypotheses, indicated that most hypotheses were accepted, signifying a substantial transformation in the overall IC performance of tourism-related companies during the pandemic crisis. This transformation was observed in the IC components of physical and human capitals. However, the structural capital was the only IC component that did not experience a significant impact from COVID-19. To comprehend the reasons and effects of the IC transformations during the pandemic, this study delved into the relevant literature. Additionally, the paper includes implications to support firms in preparing for future challenges. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)