Jasvinder Sidhu, Peta Stevenson-Clarke, Mahesh Joshi and Abdel Halabi
The purpose of this paper is to provide a historical account of four unsuccessful merger attempts between Australia’s two major professional accounting bodies over a 30-year…
Abstract
Purpose
The purpose of this paper is to provide a historical account of four unsuccessful merger attempts between Australia’s two major professional accounting bodies over a 30-year period (1969 to 1998), each of which ultimately failed. An analysis of the commonalities and differences across the four attempts is provided and social identity theory is used to explain the differences between members level of support for these merger bids.
Design/methodology/approach
This study adopts a qualitative approach using a historical research methodology to source surviving business records from public archives and other data gathered from oral history interviews.
Findings
The study found that, across all four merger attempts between Australia’s two professional accounting bodies, there was strong support from society members (the perceived lower-status group) and opposition exhibited by institute members (the perceived higher-status group). This study also found that the perceived higher-status organisation always initiated merger discussions, while its members rejected the proposals in the members’ vote.
Research limitations/implications
This paper focusses on the Australian accounting profession, considering a historical account of merger attempts. Further research is required that includes interviews and surveys of those involved in making decisions regarding merger attempts.
Originality/value
This paper is the first to examine in detail these four unsuccessful merger attempts between the largest accounting organisations in Australia.
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Kaveh Asiaei, Nick Bontis, Omid Barani, Majid Moghaddam and Jasvinder Sidhu
This study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior…
Abstract
Purpose
This study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior performance building upon the premise of the natural resource orchestration perspective.
Design/methodology/approach
Data were collected based on a survey data set from 118 Chief Financial Officers of publicly listed companies in Iran. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM, SmartPLS 3.0) as a method that enjoys minimum demands concerning normality assumptions and sample size.
Findings
The findings support the full mediation effect of SMCS on the relationship between CSR and organizational performance. This implies that CSR affects performance only through the mediating role of SMCS.
Practical implications
The central premise in the proposed theoretical framework is that the utilization of proper management control mechanisms (i.e. SMCS) can help the organization to better synchronize, measure and manage – i.e. “orchestrate” – the social, environmental and economic impacts, and this, in turn, leads to improved organizational performance.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind, building on a unique synthesis of the agency cost perspective and resource orchestration theory, to introduce the “natural resource orchestration” approach for examining the intervening role of SMCS between CSR and organizational performance.
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Sukhdev Singh, Jasvinder Sidhu, Mahesh Joshi and Monika Kansal
The purpose of this paper is to measure the intellectual capital performance of Indian banks and established a relationship between intellectual capital and return on assets…
Abstract
Purpose
The purpose of this paper is to measure the intellectual capital performance of Indian banks and established a relationship between intellectual capital and return on assets (ROA). The paper also compared the intellectual capital performance of public sector and private sector banks.
Design/methodology/approach
This study is based on secondary data from the top 20 Indian banks. Ten banks were selected from each of the public and private sectors on the basis of paid-up equity capital. The analysis was made using the value added intellectual coefficient, the coefficient of variation, exponential growth rates, trend analysis, Yule’s coefficient, the coefficient of correlation, the F-test and the t-test.
Findings
The study revealed that private sectors have performed relatively better regarding the creation of total information coefficient (IC). However, the ROA was still below the international benchmark of > 1 percent. The major cause of the lower IC and the reduced ROA is disproportionate to the increase in capital employed and escalating non-performing assets in the Indian banking sector.
Practical implications
The study focussed on managers and identified the causes of lower performance. It proposed numerous strategies to improve the aggregate score of IC, which is closely related to bank profitability.
Originality/value
This is the first study to make a comparative analysis of intellectual capital performance in public and private sector banks in India and in addition to the traditional style of measuring sectoral performance. Further, the study employed new statistical tools, such as Yule’s coefficient of association, to establish the association between performance variables.
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Mahesh Joshi, Daryll Cahill and Jasvinder Sidhu
The purpose of this paper is to examine the intellectual capital (IC) performance of Australian banks for the period 2005‐2007. It also aims to examine the relationship amongst…
Abstract
Purpose
The purpose of this paper is to examine the intellectual capital (IC) performance of Australian banks for the period 2005‐2007. It also aims to examine the relationship amongst various constituents of IC performance.
Design/methodology/approach
The value added intellectual coefficient (VAIC™) approach developed by Pulic is used to determine the IC performance of the Australian banks. The required data to calculate different constituents of IC was obtained from the annual reports of Australian banks.
Findings
The paper reveals that VAIC™ has a significant relation with human costs and the value addition made by the Australian banks. All Australian owned banks have relatively higher human capital efficiency than capital employed efficiency and structural capital efficiency. The size of the bank in terms of total assets, total number of employees and total shareholders equity has little or no impact on the IC performance of the Australian owned banks.
Research limitations/implications
The paper analyses IC performance of only 11 Australian owned banks. However, the more than 90 per cent market share enjoyed by these banks still promises a degree of validation of the results of the paper from the Australian perspective or similar banking structure in some countries.
Practical implications
The findings may serve as a useful input for bankers to apply knowledge management in their institutions and in addressing the factors affecting IC performance in order to maximise their value creation. The findings of the study would also provide some information to the stakeholders and potential investors to assess the value creation capabilities of this group of banks.
Originality/value
This is the first paper that examines the relationship of VAIC™ and the size of the firms for Australian owned banks in Australia.
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Mahesh Joshi, Daryll Cahill, Jasvinder Sidhu and Monika Kansal
The purpose of this paper is to examine the intellectual capital (IC) performance of the Australian Financial Sector for the period 2006‐2008. It also aims to examine the…
Abstract
Purpose
The purpose of this paper is to examine the intellectual capital (IC) performance of the Australian Financial Sector for the period 2006‐2008. It also aims to examine the relationship between IC performance and the financial performance of the financial sector.
Design/methodology/approach
The value added intellectual coefficient (VAIC) approach developed by Pulic is used to determine the IC performance of the Australian financial sector. The required data to calculate different constituents of IC was obtained from the annual reports of Australian Financial Sector companies.
Findings
The value creation capability of financial sector in Australia is highly influenced by human capital. About two thirds of the sample companies have very low levels of intellectual capital efficiency. The performance of various components of VAIC and overall VAIC differs across all subsectors in the financial sector. Investment companies have high value VAIC due to higher a level of human capital efficiency, as compared to banks, insurance companies, diversified financials and RIETs. Insurance companies are more focussed on physical capital rather than human and structural capital leading to lower VAIC.
Research limitations/implications
The paper analyses IC performance of only one sector of the Australian economy and there is a relatively narrow three‐year period for the data collection. However, a comparative analysis of various sub sectors in the Australian financial sector justifies the contributions made by this study.
Practical implications
The findings may serve as a useful input for financial institutions to apply knowledge management in their institutions and in addressing the factors affecting IC performance in order to maximise their value creation. It will also help the management of companies in other sectors, especially those in knowledge‐based industries, in understanding the contributions of various components of intellectual capital in their growth.
Originality/value
This is the first paper that examines the relationship of intellectual capital performance with financial performance of financial sector companies in Australia.
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Mahesh Joshi, Dharminder Singh Ubha and Jasvinder Sidhu
The purpose of this paper is to investigate and compare the voluntary reporting of intellectual capital (IC) by the top 20 software and technology sector companies in a developing…
Abstract
Purpose
The purpose of this paper is to investigate and compare the voluntary reporting of intellectual capital (IC) by the top 20 software and technology sector companies in a developing nation, India, and a developed nation, Australia. The paper aims to highlight the differences in IC disclosure practices of the companies operating in two different economies.
Design/methodology/approach
The study investigates the top 20 firms by market capitalisation listed on the Bombay Stock Exchange in India and the Australian Stock Exchange in Australia in the year 2007‐2008. Using the content analysis method, the paper reviews the annual reports of these firms to determine IC disclosure trends in India and Australia. Statistical tools and graphs have been used to compare and contrast ICD disclosures in two countries.
Findings
The study has identified IC disclosure differences between Indian and Australian firms, and reports disclosures by Indian companies are on a higher scale than Australian Software and Technology Sector companies. However, Levels of voluntary IC disclosure are found to be low in both the nations and most of the disclosures are declarative in nature.
Research limitations/implications
This lack of consistency in reporting practices makes comparisons across countries difficult. The paper emphasises the need for a uniform and consistent framework for the reporting of intellectual capital items.
Practical implications
The results of this exploratory study on the knowledge based industrial sector can be used by researchers to explore different types of IC reporting initiatives pursued across specifically knowledge based industrial sectors.
Originality/value
This study offers insights into comparative trends in IC disclosure practices of software and technology sector companies operating in a developed and a developing country.
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Godfred Kesse Oppong, Jamini Kanta Pattanayak and Mohd. Irfan
The purpose of this paper is to empirically investigate the effect of intellectual capital (IC) efficiency on changes in the productivity of insurance companies in Ghana.
Abstract
Purpose
The purpose of this paper is to empirically investigate the effect of intellectual capital (IC) efficiency on changes in the productivity of insurance companies in Ghana.
Design/methodology/approach
Using a panel of 33 insurance companies from 2008 to 2016, the study applied Value Added Intellectual Coefficients model as a measure of IC efficiency, whilst Malmquist Productivity Index is employed to capture changes in the productivity of insurance companies. In estimating the effects of IC on productivity, System Generalised Method of Moment (GMM) is applied because of its power over endogeneity and heteroscedasticity.
Findings
Robust empirical findings on productivity analysis showed that improvements in insurer’s productivity were experienced in three year intervals out of the overall studied year. In addition, panel regression results revealed that IC along with human capital and capital employed significantly affect the productivity of insurance companies.
Research limitations/implications
The generalisability of the study findings could be questioned because it is limited to insurance firms operating in Ghana; some firms were omitted due to mergers and acquisition that reduced the final sample. Yet, the findings facilitate the validation of IC concept and, hence, informs manager/policy makers on IC utilisation as a source of competitive edge.
Practical implications
Having robust empirical findings, the study expands on the existing literature by unveiling the dynamic nature of IC relationship and productivity. The findings also serve as a benchmark for managers/policymakers in insurance companies to increase the operational efficiency by investing in IC, which will help guarantee improve returns on generated premiums.
Originality/value
Although a few studies have investigated the effect of IC in Ghana, this study is the first to examine the dynamic relationship between IC and changes in productivity in a Ghanaian context.
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Francisca Castilla-Polo and Consuelo Ruiz-Rodríguez
In this paper, the authors analyze the use of content analysis in disclosing voluntarily information on intangible assets, the intangible assets disclosures (IAD). The purpose of…
Abstract
Purpose
In this paper, the authors analyze the use of content analysis in disclosing voluntarily information on intangible assets, the intangible assets disclosures (IAD). The purpose of this paper is to conduct a structured literature review (SLR) that assesses the possibilities and limitations of content analysis.
Design/methodology/approach
To that end, the authors analyze the existing literature on the topic in the main international databases. In all, 74 empirical articles utilizing content analysis as a research methodology for IAD were reviewed. Regarding the selection of sources, the authors should indicate that the SLR performed includes academic studies published in journals or presented at conferences and that are always subject to a double process of anonymous review.
Findings
The obtained results indicate that despite the frequent use of content analysis in studies on IAD, its use does not meet all expectations.
Research limitations/implications
The study synthesizes the research on content analysis for the case of information on intangible assets, offering an updated and global framework for future researchers through the SLR.
Practical implications
Among other problems, the authors found its excessive emphasis on the amount disclosed in the annual report, ignoring other reports in which more information regarding intangible assets is available, such as in the case of the sustainability reports. Furthermore, the use of very different coding systems and its exclusive use without being combined with other methodologies are detected. These aspects affect the quality problems of the sources used, which directly results in the utility of the evidenced findings.
Social implications
These conclusions allow the authors to conclude on the need to open different lines of study that review the use of content analysis in this topic.
Originality/value
The work focuses on the quality of disclosures more so than on the quantity, offering a critical view that summarizes the utility of the employment of content analysis for this type of disclosure and its implications for future research on this topic. Despite previous studies, the authors highlight the new insights revealed from IAD research, especially since the seminal paper of Dumay and Cai (2014).