Analysis of intellectual capital disclosure – an illustrative example

Abstract

Purpose -The purpose of this paper is to provide an analysis of intellectual capital (IC) disclosures in annual reports (mandatory and voluntary) and draw attention to the specific issues related to the methodology used i.e. content analysis. The focus is to incorporate all forms of IC disclosurenarratives, numbers, and visual images -into the analysis as well as highlight the need to study both quantity (extent) and quality of disclosure. Design/methodology/approach -Using content analysis, this paper analyzes 30 of Malaysia's largest public-listed companies from the IC disclosure of 2008 annual reports. The results are used to discuss specific methodological issues such as the usage of an IC index, choice of unit of analysis, quantity versus quality, presence/absence versus multiple disclosures, and the usage of narratives, numbers, and visual images. Findings -This paper proposes that themes are the most appropriate recording and counting unit to analyze IC information combining narratives, numbers, and visual images. The discussion finds, among others, that while quantity and quality are highly related, quality of disclosure provides the most insights into the disclosure behavior adopted by companies. Practical implications -This paper provides methodological guidelines to future IC researchers interested in analyzing the quantity and quality of IC disclosure. Originality/value -To the best of the authors' knowledge, so far there are no studies published that provide a detailed discussion on ways to capture the quantity and quality of IC information disclosed in annual reports using all three forms of disclosure -narratives, numbers, and visual images.

Using content analysis as a research methodology for investigating intellectual capital disclosure

“…This is complemented by drawing upon related issues raised in articles written about the use of CA as a research methodology for investigating IC, being Guthrie et al (2004b), Abeysekera (2006), Beattie and Thomson (2007), Steenkamp and Northcott (2007) and Husin et al (2012), and/or accounting research such as social and environmental disclosures (e. g. Guthrie and Abeysekera, 2006). As Dumay and Cai (2014) outline, these "articles were chosen because they specifically address the use of CA as a research methodology for investigating ICD and have been extensively cited in articles that apply CA as a research methodology".…”

Intellectual Capital As A Financial Performance Measurement In Public Sector

“…Items are disclosed in the financial statements of government agencies relating to intellectual capital have a tendency that items must be disclosed because it has a high material value. And in a study conducted by Husin and Olesen (2012) states that the measurement of intellectual capital disclosures only describes the quantity of intellectual capital disclosures rather than on the quality of government institutions disclosure of intellectual capital.…”

Occupational Health and Safety Reports: A Comparative Study between Malaysia and the United Kingdom

“…A theme does not exist in a word, sentence or paragraph but its existence rather lies between the beginning and end of a discussion without being restricted to punctuation. Read between the lines is important in identifying themes (Beck, Campbell & Shrives 2010;Campbell & Rahman 2010;Mat Husin, Hooper, & Olesen 2012). The study applied volumetric method to count information content.…”