Intellectual capital accounting in the age of integrated reporting: a commentary

Abstract

Intellectual capital accounting in the age of integrated reporting: A commentary AbstractPurpose: This commentary explores the extent to which the practice of integrated reporting (IR) in organisations can be a vehicle for furthering and sustaining the practice of accounting for intellectual capital (IC). It introduces the eight papers forming this special issue that demonstrates how organisations are developing practices at the nexus of IC and IR. Methodology:The commentary is a review of the eight papers, and it connects the outcomes from these papers into some future research directions based on an interpretive approach and the special issue editors' expertise on IC and IR. Findings:The papers published in this special issue provide a useful foundation for extending the research project on integrated reporting-led IC accounting. However, there is a lack of research in this special issue that goes much beyond third stage IC research, which is directed at strengthening IC practices inside organisational boundaries. Originality:The special issue presents leading-edge research into the nexus between IC and IR to inform future research opportunities. Research implications:While it is essential to understand how IR works in practice moving beyond organisational boundaries it is even more critical if companies are to survive and thrive in an increasingly turbulent business operating environment. Thus, this commentary offers arguments as to how IC and IR research can extend into fourth and fifth stage research paradigms.

Exploring the firm and country determinants of the voluntary adoption of integrated reporting

“…Companies that are willing to start the “integrated reporting journey” may in fact be encouraged to pay attention to their profitability, to the relevance that they pay to intangible resources, and to the size of their boards. This is consistent with the claim that some authors have done, advancing that intangible capitals have found a new life through IR (Abhayawansa, Guthrie, & Bernardi, ). Moreover, the buy‐in from the board has been identified as one of the fundamental steps (although not the only one) for a successful implementation (French Institute of Directors, ; IIRC, ).…”

The role of board of directors in intellectual capital disclosure after the advent of integrated reporting

“…In relation to the determinants, Zuraida and Mulyany (2019), analysing 280 IPO prospectuses of Indonesian companies, found a positive and significant effect of year and firm size on ICD level. Other studies have analysed integrated reports (Abeysekera, 2013; Abhayawansa, Guthrie, & Bernardi, 2019; Beretta et al, 2019; Camodeca, Almici, & Sagliaschi, 2019; Casonato et al, 2018; Dumay, 2016; Dumay et al, 2019; Melloni, 2015; Terblanche & De Villiers, 2019; Veltri & Silvestri, 2015; Vitolla, Raimo, & Rubino, 2019b), but only two analysed the determinants of ICD. In this regard, Melloni (2015) highlighted how declining performance, the level of intangibles, and firm size influence the positive tone of ICD, while Beretta et al (2019) demonstrated the existence of a positive relationship between non‐financial performance and the optimistic tone of ICD.…”

Does Environment Management Practice Play a Mediating Role between Green Intellectual Capital and Green Human Resource Management?

“…However, an environmental culture of an organization can refers to the set of values, organizational culture, assumptions, and symbols (Rehman, Kraus, Shah, Khanin, & Mahto, 2017), and consistent with Meijerink & Bondarouk (2018), an important relation exists between green HRM and organizational culture. Moreover, e-HRM that is vital part of IT system of Green Structural Capital, was found to have a relation with green practices of HRM (Alfaro-Navarro, López-Ruiz, & Peña, 2017;Akhtar, Ismail, Ndaliman, Hussain, & Haider, 2015;Abhayawansa, Guthrie, & Bernardi, 2019).…”