An empirical investigation and users' perceptions on intellectual capital reporting in banks

Abstract

Purpose-The purpose of this paper is to report the findings of a study of intellectual capital (IC) reporting by private commercial banks in the developing economy of Bangladesh, together with the perceptions of a range of stakeholders' with respect to such disclosures. Design/methodology/approach-The paper was informed by the results of a study carried out in relation to Bangladeshi banks. Initially, the annual reports of 20 selected banking institutions listed on the Dhaka Stock Exchange were subjected to a content analysis exercise. A questionnaire survey was subsequently conducted to explore stakeholders' perceptions about the practice of IC disclosure within this sector. Findings-The findings in the paper indicate that the managements of Bangladeshi commercial banks are not currently enthusiastic about the necessity for such voluntary disclosure activity. The key focus for IC reporting is on human capital elements. Stakeholders' are in favour of such reporting across a wider range of IC items than is currently disclosed. Research limitations/implications-The results of these exploratory studies can be used by researchers to explore further the different types of IC reporting initiatives pursued across a wider spectrum of industries and any differences in users perceptions by industry, as well as over time. Originality/value-The paper contributes to the IC literature by presenting empirical evidence on IC disclosures and users' perceptions about such practices in the context of the Bangladeshi banking sector.

Relationship between Unionized Companies, Government Ownership and Reporting Human Capital Information in Corporate Annual Reports

“…Accordingly, disclosing additional information on human capital may be part of a strategy to attract potential employees or signal that existing employees are being acknowledged as assets in the companies and unveil their highly capable staff before investing in these companies (Abeysekera 2008). The findings of the current study also corroborate the findings of Khan and Ali (2010), who determined a predominance of HCD in Bangladeshi banking companies. Similarly, Branco, Delgado, Sausa, and Sa (2011) discovered a high proportion of HCD in the banking industry in the annual and website reports.…”

“…The ratio of membership numbers (+45,000 members) to number of companies (23 companies) in such industry is considered enormous, thereby indicating the strength of the labor union within the industry. Moreover, several previous studies showed that human capital information had high value in the annual reports of banks (Branco et al 2011;Khan & Ali 2010). The real estate and property industries were selected to represent poorly unionized industry instead of other industries because of the low number (i.e., 180) of memberships registered in MTUC.…”

Intellectual Capital Performance of the Commercial Banking Sector of Malawi

“…The study furthermore, informs the practitioners in the banking sector in Malawi of the current intellectual capital performance of the banks and the needed improvements in order to enhance it. On the other hand, as generally there is dearth of literature on intellectual capital in developing economies (Abeysekera, 2007;Khan & Ali, 2010); the study therefore enriches existing literature by providing empirical evidence of intellectual capital performance taking a case of commercial banking sector from a developing country. Besides, being the first study of its kind in Malawi, the study acts as a future reference source.…”

“…Generally intellectual capital research is scarce in developing economies (Abeysekera, 2007;Khan & Ali, 2010). In Malawi there has not been any empirical study on intellectual capital performance of the commercial banks.…”

Effects of Professional Ethics on Development of Intellectual Capital at Agriculture Bank

“…He believes that intellectual capital is the endeavor to effectively use knowledge against information and it is a term used to integrate market intangible asset, intellectual asset, human asset, and infrastructure assets making the organization capable to do its activities (Motaghi & Mobaraki, 2010). Stewart defines intellectual capital as knowledge, intellectual materials, information, experience, and intellectual property which can be used to wealth production (Khan & Ali, 2010). Stewart demonstrated that intellectual capital includes what can be used by the firms to promote competitive advantage in the market including knowledge, information, intellectual interest, rights, and experience (Lu et al, 2010, p.547).…”