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Article
Publication date: 30 December 2024

Thi Thuy An Hoang, Doaa Aly, Muath Abdelqader, Muntaser J Melhem, Tamer K Darwish and Anas Al Tweijer

This study aims to explore the extent of Intellectual Capital Disclosure (ICD) in the annual reports of the top 50 listed Vietnamese companies. It assesses the influence of firm…

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Abstract

Purpose

This study aims to explore the extent of Intellectual Capital Disclosure (ICD) in the annual reports of the top 50 listed Vietnamese companies. It assesses the influence of firm characteristics and corporate governance structure on ICD practices.

Design/methodology/approach

ICD was measured using content analysis, specifically word count percentage. Panel data regression analysis was employed to examine the relationship between firm characteristics, governance structures and the level of ICD.

Findings

Results reveal that ICD levels among Vietnamese firms sampled are relatively low, averaging 17.43% of the overall annual report word count. Relational capital emerges as the most disclosed category of IC. Firm size, profitability, industry type, number of independent board members and CEO duality significantly impact the level of ICD. However, leverage, board size and the presence of an audit committee show no significant influence on ICD.

Practical implications

These findings offer insights into agency and signaling theories. They provide empirical evidence for stakeholders, academics and regulatory bodies to comprehend ICD practices and identify factors that could enhance ICD in emerging markets like Vietnam.

Originality/value

This study contributes to the literature by examining ICD practices in an emerging market context and identifying the impact of firm characteristics and governance structures on ICD levels, offering valuable implications for both theory and practice.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 15 August 2022

Ali Uyar, Muath Abdelqader and Cemil Kuzey

Drawing on financial slack resources theory, stakeholder theory and signaling theory, the purpose of this study is to explore the two-way causality between liquidity and corporate…

1096

Abstract

Purpose

Drawing on financial slack resources theory, stakeholder theory and signaling theory, the purpose of this study is to explore the two-way causality between liquidity and corporate social responsibility (CSR) by using the cash conversion cycle (CCC) as liquidity proxy and composite and individual CSR metrics.

Design/methodology/approach

The data were retrieved from the Thomson Reuters Eikon database covering the period between 2013 and 2019 and 20,016 firm-year observations affiliated with ten business sectors and 60 countries. The fixed-effects panel regression analysis is executed in the empirical part.

Findings

The results indicate that firms with greater liquidity proxied by shorter CCC engage with greater CSR initiatives. They also reveal that firms with greater liquidity proxied by CCC do not regard all the dimensions of environmental and social performance equivalently; they do discriminate them. In the environmental pillar, firms funnel their cash derived from shorter CCC toward eco-innovation and resource use, respectively, but not to emissions reduction. In the social pillar, higher liquidity fosters community and human rights dimensions, respectively, but not workforce and product quality. These outcomes are largely robust to alternative CSR measurement, alternative sampling and endogeneity concerns. The reverse causality confirmed that CSR promotes higher liquidity (shorter CCC). Thus, the bidirectional relationship between CSR and liquidity is confirmed.

Research limitations/implications

Although the authors wanted to consider a longer study period, they were obliged to choose 2013 as the starting period because particularly CCC data together with environmental, social and governance (ESG) data were not available in the earlier years.

Practical implications

Among environmental indicators, fueling eco-innovation most with greater liquidity shows that firms make a strategic choice for their long-term growth and legitimacy. Besides, greater liquidity induces greater community development and more respect for human rights rather than investing in workforce and product quality. Although this might be an outcome of the realization of a deliberate strategy and good for the society, not investing in the workforce and product quality may impair the long-term survival and competitive position of the firm in the long-run in the marketplace. The implication of reverse causality is that customers purchase products and services of firms that do good for the ecology and the community and they pay faster to those companies.

Social implications

This study highlights that liquidity management and CSR are closely interrelated confirming a chicken and egg story. Firms with better liquidity management are more likely to care environment and community. Besides, doing good for society pays back in the form of enhanced firm liquidity triggering customer sympathy.

Originality/value

This research provides new insight by examining the two-way causality of the relationship between CSR performance and liquidity, which helps highlight the impact of CSR performance on the company’s ability to manage its cash and the benefits of having high liquidity on enhancing the company’s concern about the society and environment.

Details

Society and Business Review, vol. 18 no. 1
Type: Research Article
ISSN: 1746-5680

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