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Copyright of Contabilidad y Dirección is the property of ACCID 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.)

We examine the value relevance of accounting-driven losses that result from the immediate expensing of firms' internally generated intangible investments versus losses occurring irrespective of intangible investments. Contrary to the long-held view that losses are less relevant than profits for valuation, we find that once the accounting bias of intangibles-expensing is undone, earnings of firms reporting intangibles-driven losses are as informative as earnings of profitable firms. Furthermore, contrary to the view that persistent losses decrease earnings relevance, our evidence shows no decrease in the relevance of earnings for firms reporting persistent intangibles-driven losses. We also find that firms reporting intangibles-driven losses subsequently outperform other loss firms and even profitable firms in value creation from investments in technological innovation and human capital. Our evidence further shows that firms reporting intangibles-driven losses have stronger future performance than other firms. Taken together, the results of this study demonstrate the fundamental differences between losses driven by the immediate expensing of internally generated intangible investments and losses reflecting genuine business performance shortfalls. Standard accounting performance measures, however, do not properly reflect these operational differences and their implications. [ABSTRACT FROM AUTHOR]

From an empirical-based perspective, this paper explores the influence of intellectual capital factors on the performance of firms in the Dominican Republic. A Likert scale from one to seven was used to capture firms' sensitivity to human, structural and relational capital factors. An exploratory factor analysis was carried out using the method of principal components with VARIMAX rotation. The final factorial scores were standardized to execute the regression analysis. Structural capital factors appear to be the dominant intellectual capital components within the Dominican context. Human capital factors play a vital role in performance in manufacturing and in-services firms, and relational capital factors are significant in determining their performance. This research contributes to the regional literature on intellectual capital studies in Latin America and the Caribbean. It puts forward some specific points related to the role of intellectual capital factors in explaining firms' performance in small open economies such as that of the Dominican Republic. [ABSTRACT FROM AUTHOR]

In their article, the authors emphasize the importance of measuring intellectual capital. The difference between the company's market and book value is intellectual capital, which has been present within knowledge-based society for decades. A number of economists have made suggestions related to its measurement; however, no unified standpoint has been developed. Therefore, currently its value does not appear in financial statements. The reason for this is the fact that while the recorded book value of enterprises is tangible, the value of intellectual capital is difficult to quantify, it is a so-called hidden value. In the scope of their study, the authors discuss the relevance of measuring intellectual capital by describing their results provided by Baruch Lev's knowledge capital valuation.

Introduction: Intellectual capital valuation as intangible asset has earned relevance in organizations by converting in a competitive advantage source. In correspondence, at present work a intangible assets valuation with the implementation of an intellectual capital model is carried out in the "Ronera Central Agustín Rodríguez Mena", by keeping in mind its importance in value and competitiveness generation. Objective: To establish an intellectual capital model in the "Ronera Central Agustín Rodriguez Mena" that allows intangible resources measurement and management. Materials and Methods: Intangible assets owned by the organization are previously identified, considering the different organization capitals for its measurement. An intellectual capital model based on the three classical capitals, human, structural and relations are established. Results and Discussion: With the application of intellectual capital model, intangible assets classification in this company is carried out, in order to effectively detect and manage these assets whose performance crucially determines the viability, development and preservation of competitive advantages, positioning and the sustainable organization growth. Conclusions: Intangible assets opportune identification and management constitute a key element in value generation, producing competitive advantages that result into benefits, and must be reflected in company value. [ABSTRACT FROM AUTHOR]

Copyright of Revista Espacios is the property of Talleres de Impresos Oma 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.)

The increasing role of intellectual capital - and its key component, human capital - in corporate value creation has been one of the most discussed topics in performance management studies in the last three decades. Many scholars and practitioners agree that these critical intangible strategic resources must be monitored and effectively managed at the firm in order to achieve corporate performance targets and execute strategy successfully. Integrating human capital into the strategic performance management system is not a simple exercise though as various organizational factors must be managed consciously on the way. This longitudinal case study research is focusing on the role of leadership on how human capital is integrated to strategic performance management, by analyzing various data at a leading financial service provider for more than 10 years. During this period the senior leadership was changed, which had a significant impact on both the perceived importance of human capital as well as the way how it was integrated to strategic performance management at the specific organization. [ABSTRACT FROM AUTHOR]

Copyright of Dilemas Contemporáneos: Educación, Política y Valores is the property of Dilemas Contemporaneos: Educacion, Politica y Valores 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.)

In the current era of knowledge oriented business, intellectual assets are to be valued as much as physical assets and the traditional financial reporting system did not keep pace with the growth of intangibles necessitating its disclosure voluntarily. To improve the usefulness of financial reporting, the companies need to focus on intangibles and innovation. The paper collates 15 items involving human and Intellectual Capital (HIC), the firms can focus to disclose. The items were selected after a rigorous process of examining the human and intellectual capital disclosures practices of companies around the world. After identifying the items of HIC disclosure the study measured the HIC disclosure practices of non-financial companies in the BSE 100 index for a period of five years, from 2009-2010 to 2013-2014. The study found significant differences in the disclosure scores across the years and the industry type. The study also examined the factors influencing the HIC disclosure practices by classifying the variables as firm character, financial and governance. It is found that size, foreign revenue, profitability, are the factors affecting the level of HIC disclosure. [ABSTRACT FROM AUTHOR]

The primary purpose here is to briefly outline and illustrate how one particular relationist/realist ontological approach to performative research, with a focus on professionals' subjective interpretations of intangibles/intellectual capital, may be capable of generating reasonably substantive findings. Methodologically the paper illustrates, if in skeletal form, how adopting a Habermasian performative attitude allied with Wittgenstein's use-theory of language may direct performative research on values, value orientations, norms and legitimacy as a means of addressing the subjective interpretations of worker/manager/professional groups. Drawing on a case vignette, personal value orientations towards intangibles/intellectual capital provide both the performative methodological access points and the empirical focus. The performative method applied appears capable of generating reasonably substantive findings. Value orientations towards intangibles/intellectual capital are clearly present in the human resource (human capital) profession; what is striking is their apparent absence in the finance/accounting (financial capital) profession as the phenomenon may be perceived by the latter to lack professional accounting legitimacy. Mutually-recognised inter-subjective meanings, inclusive of common value orientations towards the case site's intangible value creating processes, are apparently absent in this professional relation. Theoretically, ontologically and methodologically influenced by Habermas and Wittgenstein the paper illustrates the potential of adopting a performative attitude towards values, norms and legitimacy as a means of addressing the subjective interpretations of workers/managers/professionals towards emergent business concepts such as intellectual capital or indeed integrated reporting. [ABSTRACT FROM AUTHOR]

The value of companies is traditionally estimated from the material wealth they hold. In the context of the knowledge economy (KE), these elements are no longer enough to estimate this value. Many authors are interested on new sources of value creation called immaterial. Nevertheless, the intangible elements, without physical or intangible substance, are difficultly taken into account by old accounting methods. The work done around our problem tries to define a model that reflects the overall performance of firms of the NE, by adding information about the intangibles to the old accounting data. The present study is looking for reliable measures of the performance of Tunisian firms which are operating in the new economy. The failure of accounting and financial data leads us to add other information. The pieces of information are related to intangible capital which is the main source of value creation for firms in the KE; however, they are ignored in traditional metrics. The results obtained, following the different operated regression, indicate the significance of the variables: "book value, BVE;" "return on equity, ROE;" and "return on assets, ROA." However, the other ratios are insignificant. Furthermore, the explanatory power of the model is fairly low hovering around 20%. This result allows us to confirm the failure of classical accounting and financial data to translate firm performance of KE. Thus, we validated our initial hypothesis that stresses the usefulness of accounting and financial data in evaluating the performance of firms in the KE. Similarly, data on intangible capital is embodied in three aspects–structural, customer, and human–that play important roles in assessing this. The obtained results indicate that the explanatory power of the model, taking into account the intangible component, is higher than that based solely on the accounting and financial data. Indeed, adjusted R² lies in a range between 30 and 66%. This validates our second hypothesis on the role of intangibles in the chain of value creation. This study shows the important role of intangible capital information in the process of decision-making. Thus, investors and managers should give particular attention to immaterial components which allowed a better appreciation of the overall performance of Tunisian firms operating on NE. This is the contribution of our work. [ABSTRACT FROM AUTHOR]

Measuring the value of intangibles is not easy, because they are critical but usually invisible components of the innovation process. Today, access to nonsurvey data sources, such as administrative data and repositories captured on web pages, opens opportunities to create intangibles based on new sources of information and capture intangible innovations in new ways. Intangibles include ownership of innovative property and human resources that make a company unique but are currently unmeasured. For example, intangibles represent the value of a company's databases and software, the tacit knowledge of their workers, and the investments in research and development (R&D) and design. Through two case studies, the challenges and processes to both create and measure intangibles are presented using a data science framework that outlines processes to discover, acquire, profile, clean, link, explore the fitness-for-use, and statistically analyze the data. The first case study shows that creating organizational innovation is possible by linking administrative data across business processes in a Fortune 500 company. The motivation for this research is to develop company processes capable of synchronizing their supply chain end to end while capturing dynamics that can alter the inventory, profits, and service balance. The second example shows the feasibility of measurement of innovation related to the characteristics of open source software through data scraped from software repositories that provide this information. The ultimate goal is to develop accurate and repeatable measures to estimate the value of nonbusiness sector open source software to the economy. This early work shows the feasibility of these approaches. [ABSTRACT FROM AUTHOR]

In their article, the authors emphasize the importance of measuring intellectual capital. The difference between the company's market and book value is intellectual capital, which has been present within knowledge-based society for decades. A number of economists have made suggestions related to its measurement; however, no unified standpoint has been developed. Therefore, currently its value does not appear in financial statements. The reason for this is the fact that while the recorded book value of enterprises is tangible, the value of intellectual capital is difficult to quantify, it is a so-called hidden value. In the scope of their study, the authors discuss the relevance of measuring intellectual capital by describing their results provided by Baruch Lev's knowledge capital valuation. [ABSTRACT FROM AUTHOR]

Despite the plethora of IC reporting frameworks proposed by scholars and practitioners, their adoption is still not widespread in practice. In other words, IC seems to be more preached than practiced (Dumay, 2009, Chiucchi, 2013b, Lönnqvist et al., 2009). As a consequence, various studies have examined which are the levers and the obstacles that can influence the adoption, use and diffusion of IC reporting practices (Dumay, 2012, Lönnqvist et al., 2009, Catasús et al., 2007, Catasús and Gröjer, 2006, Chiucchi and Montemari, 2016, Giuliani et al., 2016). Levers and barriers can be related to the technical-objective side of IC, i.e. how IC is measured and managed, or to its organizational-subjective side, i.e. who measures and manages IC (Chiucchi et al., 2016). While there are some studies that aim to understand the technical sides (Giuliani, 2016, Giuliani, 2014, Giuliani et al., 2016, Dumay and Rooney, 2011, Catasús et al., 2007, Catasús and Gröjer, 2006), the subjective side of IC appears to be underinvestigated (Chaminade and Roberts, 2003, Chiucchi, 2013a, Chiucchi, 2013b). Moving from these considerations, the aim of this study is to examine the roles played by the "project sponsor" (PS) and the "project leader" (PL) in the design and implementation process of an IC reporting project. In order to achieve this aim the results of an exploratory field study (Roslender and Hart, 2003, Lillis and Mundy, 2005) referred to Italian companies that adopted an IC report will be presented. Our study adds to IC literature by showing, from a practice-based perspective, the roles played by the PSs and of the PLs in different organizations and how they are determinant in the decision to undertake these projects, in their accomplishment, prosecution and abandonment. In particular, it emerges that PSs and PLs have a relevant role in the IC sensegiving and sensemaking processes: their specialization influence the way IC is perceived within the company and the fate of the IC report, i.e. in determining the success or the failure of the IC projects. [ABSTRACT FROM AUTHOR]

National intellectual capital is regarded as an important factor of a country’s ability to perform high value added functions including the ability to create innovations. Measuring national intellectual capital is still a complicated task. In this article national intellectual capital concept and measurement models are analysed in order to show how national intellectual capital could be measured. The findings show that there are several weaknesses of measurement models validity. Those weaknesses in more recent measurement models are minimized by introducing advanced national intellectual capital structural models and more complex value approximation methods. Analysis of selected national intellectual capital measurement models has shown that there are not many similar indicators used (from 21% to 60% of matching indicators), though results obtained by using these evaluation models have high significant correlation.

Purpose – Intellectual capital (IC) is fundamental to understanding how firms create value; however, current IC disclosure (ICD) has been described as inadequate due to the lack of an established IC framework and companies’ actual commitment to report IC information. The International Integrated Reporting Council aims to foster ICD by means of integrated reporting (IR); such a report should display how IC and other forms of capital (e.g. financial) contribute to value creation over time. Drawing on impression management (IM) studies, the purpose of this paper is to assess the quality of ICD offered in IR. Design/methodology/approach – A manual content analysis of all the reports available in the International Integrated Reporting Council web site is run considering both the content of ICD and specific linguistic attributes (evidence, time orientation and tone). In addition, the study tests the relationship between the positive ICD tone and specific characteristics that may incentive managers to manipulate their disclosure to determine whether firms use ICD to manage public perceptions of corporate behaviour. Findings – The results of the content analysis show that majority of ICD is focused on relational capital, with limited quantitative and forward-looking information. Additionally, compared to non-ICD, ICD is significantly more optimistic. Furthermore, the positive tone of ICD is significantly associated with declining performance, bigger size and higher level of intangibles supporting the use of ICD as an IM strategy. Originality/value – The research contributes to the literature offering evidence of the quality of the ICD offered in the IR and demonstrating that ICD offered in the IR is used by managers opportunistically to advance their image. [ABSTRACT FROM AUTHOR]

We study the adoption of different patterns of intangible asset (IA) accumulation in manufacturing firms. Contrary to most of the previous literature, we find such patterns to be highly differentiated. In particular, we identify three types of firm behaviour: high and persistent, low and persistent, and discontinuous. We link the capability-based view of the firm to theories of asset complementarities and market signalling to explain how firm-specific traits affect such behaviours. We obtain the following results: first, the persistent accumulation of IAs is favoured by the internal availability of highly skilled personnel; second, firms with (a) large IA base and (b) high propensity to exploit complementarities in the asset stocks are more likely to persistently accumulate IAs than to discontinuously or never accumulate IAs and third, the adoption of quality management standards facilitates the accumulation of IAs, especially if this is done discontinuously. This paper adds to the previous literature in two ways: first, it highlights the existence of great heterogeneity in the dynamics of IA accumulation and, second, it provides an explanation for such heterogeneity. [ABSTRACT FROM PUBLISHER]

Copyright of Business: Theory & Practice is the property of Vilnius Gediminas Technical University 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.)

Purpose – With a view to enabling organisations provide a clear understanding of firm value creation, several national and supranational institutions have produced guidelines and frameworks for externally reporting intellectual capital (IC). In many cases regulators, the accounting profession and accounting scholars have driven these initiatives. The purpose of this paper is to summarise, analyse and compare the guidelines and frameworks that have been developed with a focus on externally reporting IC. Design/methodology/approach – The paper analyses the assumptions underpinning 20 guidelines and frameworks that have been developed with a focus on reporting IC using a self-constructed framework. Findings – The review resulted in a comparison of IC reporting guidelines and framework based on target audience, role of IC within the organisational strategic management process and reporting IC indicator. It provides an understanding of the state of the art in relation to external reporting of IC. Practical implications – The insights provided by the comparison of the guidelines and frameworks are likely to be helpful for practitioners wanting to adopt or develop an IC reporting model for their organisation. Policy-makers will find these insights beneficial when attempting to refine existing frameworks and guidelines for reporting IC and in developing new ones to suit various circumstances. Also, this paper provides a useful review for academics. Originality/value – This is the first paper to provide a review of a large number of business reporting guidelines and frameworks with a focus on IC. It is a valuable reference for practitioners, policy-makers and academics on IC reporting models. [ABSTRACT FROM AUTHOR]

In the knowledge based economy intangible resources are the primary value drivers. This is particularly true of companies such as banks. However, intangible resources (also called Intellectual Capital) appear difficult to measure. Today, there are several methods that allow us to measure Intellectual Capital in listed companies. However, not all methods of measurement are adequate for listed banks. This paper uses the Value Added Intellectual Coefficient™ (VAIC™) ratio to measure the Intellectual Capital efficiency of the Polish listed banks using a five years period data set from 2005 to 2009. Three value efficiency indicators, Human Capital Efficiency (HCE), Capital Employed Efficiency (CEE) and Structural Capital Efficiency (SCE) which are the components of the VAIC™ ratio, were used in the analysis. The data set was divided into two groups of banks. The first group was that of 10 listed Polish banks and the second group was comprised of 10 listed comparable banks from Europe (which was the peer group). The results of the rankings of the banks for the average of five years (2005-2009) showed that for VAIC™ the top two performers in the study were Komercni Banka and BRD Groupe Societe Generale S.A. The BCGE - Banque Cantonale de Geneve, Bankas Snoras and BOŚ Bank were the worst performers. The results of ranking based on Human Capital Efficiency (HCE), showed similar results as that of VAIC™. There was observed a significant decrease of the VAIC™ ratio in the years 2008 and 2009 which was caused by the crisis on financial markets. The results extend the understanding of Intellectual Capital's role in creation of sustainable advantages for banks in developing economies. [ABSTRACT FROM AUTHOR]

Purpose – The aim of this paper is to help to address the need for empirical investigations on intellectual capital and intellectual liabilities "in action" and their consequences in terms of value creation and value destruction. In light of this consideration, this study aims to investigate if and how intellectual capital and intellectual liabilities influence the value creation and destruction processes, that is, if intellectual liabilities "in action" simply mirror intellectual capital dynamics or if they present some specificities. Design/methodology/approach – A multiple case study method is adopted in order to understand intellectual capital and intellectual liabilities "in action". Findings – This study highlights the relevance of intellectual liabilities within the intellectual capital discourse. In particular, it shows that intellectual capital and intellectual liabilities affect the value creation process in different ways. Moreover, it emerges that intellectual liabilities tend to be left out of managerial discussions. Stemming from this, the idea of intellectual equity is proposed and conceived as the logical difference between intellectual capital and intellectual liabilities. Research limitations/implications – The main limitations of this study are twofold. The first is related to the methodology adopted and in particular to the qualitative mapping process developed. The second is the fact that the constructs to analyse were not indicated by the firms but by the author in order to make the results comparable. Practical implications – This study contributes to the development of the literature on "intellectual capital in action" and "intellectual capital in practice" bringing in the idea of intellectual liabilities and the consideration that intellectual capital can create, but also destroy, value. Moreover, it highlights the need to monitor and manage intellectual liabilities in order to control the negative effects generated by intellectual capital. Therefore, this analysis has both theoretical and practical implications. Originality/value – In comparison to the extant literature mentioned, this study does not analyse IC only in terms of value creation, but also in terms of value destruction. Moreover, instead of proposing and developing new concepts, methods and tools, this research investigates intellectual liabilities "in action". In addition, this work jointly considers value creation and value destruction processes. [ABSTRACT FROM AUTHOR]

With the traditional research-based view approach to entry mode that examines the firm's strategies from its resource endowment and deployment (i.e., an inside-out view of the firm), which is different from the earlier paradigms (i.e., an outside-in view of the firm), this article investigates intangibles at the firm level and their impact on the choice of foreign-market entry mode to understand how to create value overseas. From the multinomial logistic regression analyses with data collected from the lodging industry between 1995 and 2005, the results of this study suggest that as marketing capital increases, entry mode seems to move from acquisition to joint venture to greenfield to contractual modes. In the case of employee efficiency, as human capital increases entry mode tends to move from joint venture to acquisition to greenfield to contractual modes, whereas in the case of top managers' efficiency, entry mode tends to move from joint venture to acquisition to contractual mode to greenfield, respectively. [ABSTRACT FROM AUTHOR]

This paper refers to the conceptualizations of strategic flexibility, real options, and human resource (HR) options to build a model for valuing future-oriented and organizational flexibility-enhancing aspects of training. By adopting an indirect approach to measuring HR options by valuing particular investment projects in which human capital is involved, we satisfy the conditions for applying the Black-Scholes option valuation model and avoid the problematic measurement of the stand-alone value of human capital. The proposed valuation model is elucidated by a case study from the mobile telecommunications industry. The results indicate that in rapidly growing markets based on emerging technology, the generation of HR options based on training should be encouraged. Broader applicability and limitations of the valuation model are discussed and directions for further development of the valuation model are given. [ABSTRACT FROM AUTHOR]

This article analyses the importance of training as a creator of human capital, which enables a company to obtain competitive advantages that are sustainable in the long-term that result in greater profitability. The study is based on the general theoretical framework of resource and capacity theory. The study not only analyses the impact of the influence of training on performance; it also attempts to analyse the nature of such a relationship in greater depth. This being the case, an attempt has been made to measure explanatory capacity from two different perspectives: the universalistic approach and the contingent approach. At the outset, two hypotheses are formulated that attempt to quantify the relationship from a universalistic perspective to later, in two more hypotheses, incorporate the potential moderating effect of the strategy into the model, in order to verify whether or not this strategy improves the explanatory power of our model of analysis. [ABSTRACT FROM AUTHOR]

In this study we used Japanese firm-level data in order to explore the productive impact of organizational capital by isolating the effect of other intangibles like R&D, brand, human and social capital. Fixed-effect and random-effect panel methodology are proposed to assess specific-organizational capital at firm level. Our results suggest that in monetary terms the value of firm-specific organizational capital stock is significant when compared to traditional assets. Findings suggest that firms building up higher stocks of organizational capital not only increase their productivity but also their value. [ABSTRACT FROM AUTHOR]