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Mondal, Amitava
- Intellectual Capital Reporting Trends in India: An Empirical Study on Selected Companies
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Authors
Affiliations
1 Department of Commerce, Kalna College, The University of Burdwan, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
1 Department of Commerce, Kalna College, The University of Burdwan, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
Source
International Journal of Financial Management, Vol 3, No 1 (2013), Pagination: 9-18Abstract
In the knowledge economy there has been increasing demands from stakeholder's side to provide sufficient information about company's ability to create wealth. Today intellectual capital is considered as superior assets for wealth creation. In this study we empirically investigate the intellectual capital reporting trends of 30 Indian knowledge intensive companies. The sample companies are selected, for this study, from the Group-A category companies of the listed companies of Bombay Stock Exchange. We have employed 'content analysis' method to measure the frequency of intellectual capital reporting in the annual reports of sample companies over the three-year period starting from 2009 to 2011. The empirical results show that reporting of intellectual capital items is unevenly distributed and information about external capital items are reported mostly. However, an upward trend in IC reporting is found in this study.Keywords
Intellectual Capital, Disclosure, Annual Reports, Content Analysis, Developing Countries, Knowledge Intensive Companies
References
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- DePablos, P. (2005). Intellectual Capital Reports in India: Lessons from a Case Study. Journal of Intellectual Capital, 6(3), pp. 61-81.
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- Guthrie, J., Petty, R. & Ricceri, F. (2006). The Voluntary Reporting of Intellectual Capital: Comparing Evidence from Hong Kong and Australia. Journal of Intellectual Capital, 7(2), pp. 254-272.
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- Vandemaele, S., Vergauwen, P. & Smits, A. (2005). Intellectual Capital Disclosure in the Netherlands, Sweden and the UK: A Longitudinal and Comparative Study. Journal of Intellectual Capital, 6(3), pp. 417-427.
- Williams, M. S. (2001). Are Intellectual Capital Performance and Disclosure Practices Related? Journal of Intellectual Capital, 31(2), pp. 192-203.
- Woodrock, J. & Whiting, R. H. (2009). Intellectual Capital Disclosures by Australian Companies. Paper Presented at the AFAANZ-2009 Conference. Retrieved from http://otago.ourarchive.ac.nz/bitstream/handle/10523/1562/03_2009_Ros_Whiting.pdf
- The Relevance of Intellectual Capital Valuation: Indian Evidence
Abstract Views :334 |
PDF Views:14
Authors
Affiliations
1 Department of Commerce, Kalna College, The University of Burdwan, West Bengal, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
1 Department of Commerce, Kalna College, The University of Burdwan, West Bengal, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
Source
International Journal of Financial Management, Vol 3, No 2 (2013), Pagination: 1-9Abstract
Intellectual capital (IC) shows a significantly growing acceptance as a worthy topic of academic investigation and practical implication. The main objective of this study is to determine the monetary value of intellectual capital and to examine whether the joint explanatory power of intellectual capital (IC), book value (BV) and earnings (residual income based on GAAP) for stock price is superior to that of earnings and book value of Indian companies. Additionally, the study aims to investigate the impact of intellectual capital on corporate value creation. This study is conducted on 110 leading knowledge companies operating in India during the period 2007 to 2011. An appropriate method is to be applied for measuring the intellectual capital performance of the company. In our study we extend the Ohlson's (1995) discounted residual income method to rationally measure firm's value by considering intellectual capital (IC). Regression models are examined in order to test the hypotheses included in the proposed conceptual framework. The empirical findings suggest that the efficient management of company's intellectual capital, in addition to earnings and tangible assets, can explain corporate value. Results proved that, in the Indian business context, the development of Intellectual resources seems to be one of the most significant factors of success. This study extends the understanding of the role of intellectual capital in creating corporate value and building sustainable competitive advantages for companies in emerging economies like India and may bring implications for valuation and reporting of intellectual capital.Keywords
Intellectual Capital, Valuation, Efficiency, Market Value, Indian CompaniesReferences
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- Abeysekera, I. & Guthrie, J. (2005). An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka. Critical Perspectives on Accounting, 16(3), 151-163.
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- The Role of Intellectual Capital in Creating Value in Indian Companies
Abstract Views :354 |
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Authors
Affiliations
1 Assistant Professor, Kalna College, The University of Burdwan, West Bengal, IN
2 Professor, The University of Burdwan, West Bengal, IN
1 Assistant Professor, Kalna College, The University of Burdwan, West Bengal, IN
2 Professor, The University of Burdwan, West Bengal, IN
Source
International Journal of Financial Management, Vol 2, No 1 (2012), Pagination: 63-73Abstract
Intellectual capital is becoming the pre-eminent resource for creating value and competitive advantage. The aim of this study is to investigate whether the performance of a company's intellectual capital can explain productivity and corporate fi nancial performance or not. This study is conducted on 75 listed companies operating in India for the period 2004 to 2009. Annual reports, especially the Profi t&Loss account and balance sheet of the company have been used to obtain the data. Necessary data also collected from Capitaline Database. Value Added Intellectual Coeffi cient (VAICTM) method is applied for measuring the Intellectual Capital performance of the company. Corporate performance measures used in this analysis are (1) Profi tability and (2) productivity. The intellectual capital and physical capital of selected companies have been analyzed and their impact on corporate performance has been measured using multiple regression technique. Findings from the empirical analysis indicate that the relationships between the performance of a company's intellectual capital and corporate performance are informative. The empirical fi ndings suggest that the effi cient management of company's intellectual capital can explain corporate value creation. In this paper a new performance indicators is used which the Indian managers can use in order to evaluate the corporate performance and benchmark it with the global standards.Keywords
Intellectual Capital, Human Capital, Structural Capital, VAIC, Profitability and ProductivityReferences
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- Determinants of Intellectual Capital Disclosure Practices of Indian Companies
Abstract Views :550 |
PDF Views:5
Authors
Affiliations
1 Kalna College, Burdwan,West Bengal, IN
2 Department of Commerce,The University of Burdwan, Burdwan, West Bengal, IN
1 Kalna College, Burdwan,West Bengal, IN
2 Department of Commerce,The University of Burdwan, Burdwan, West Bengal, IN
Source
Journal of Commerce and Accounting Research, Vol 3, No 3 (2014), Pagination: 25-36Abstract
Numerous academicians, business professionals, and consultants identified 'intellectual assets/capital' as the main factor of value creation in the present knowledge economy. Companies especially in the service sectors require maximum amount of this type of capital to maintain their existence in the competitive market, whereas empirical results show that companies disclose lesser amount of intellectual capital related information in the annual reports. In this study, we examine the factors that determine the proportion of intellectual capital disclosure in the annual reports. For the purpose of the study 30 Indian knowledge-intensive companies (software, pharmaceuticals, and finance) are selected (on the basis of highest market capitalisation) for the period 2009-2012. Content analysis of annual reports is done to prepare intellectual capital disclosure (ICD) index and efficiency of intellectual capital is measured through VAIC. Multiple regression analysis is applied to examine the relationship between dependent and independent variables. Empirical results show that audit committee's size, age, and firm size have positive relation with intellectual capital disclosure but VAIC, profitability, and leverage have negative relationship with intellectual capital disclosure. This negative association between intellectual capital efficiency and disclosure suggests that intellectually efficient companies disclose less information in the financial statement for fear of losing competitive advantage.
The present study is the first study in the Indian context that examines the determinant(s) of intellectual capital disclosure. However, this study is confined to 30 Indian knowledge companies for the period 2009-2012.
Keywords
IC Disclosure, Content Analysis, Indian Knowledge Companies, IC Efficiency.References
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- A Study on Effectiveness of Investment in Intellectual Capital of Indian Knowledge Companies
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Authors
Affiliations
1 Department of Commerce, Kalna College, West Bengal, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
1 Department of Commerce, Kalna College, West Bengal, IN
2 Department of Commerce, The University of Burdwan, West Bengal, IN
Source
International Journal of Business Analytics and Intelligence, Vol 3, No 2 (2015), Pagination: 65-76Abstract
Intellectual capital (IC) is non-monetary assets or resources without physical substances which are underlying factors of a firm's value creation process. Knowledge based companies mainly depend upon these type of assets for their value creation and competitive advantage. The present study makes an attempt to examine efficiency and effectiveness of investment in intellectual capital of 100 Indian knowledge companies during the period 2002 to 2011. In other words, this study examines the efficiency of intellectual capital management with regard to target level of Indian knowledge companies. For the purpose of the study, 100 Indian knowledgeintensive companies comprising 32 software companies, 32 pharmaceuticals companies, and 36 banking and finance companies are selected on the basis of highest market capitalisation. For measuring the efficiency of intellectual capital Pulic's VAICTM (value added intellectual coefficient) is applied. This study examines, by applying partial adjustment (PAM) model, how fast the sample companies are improving the respective level of intellectual capital efficiency with respect to a target efficiency level.
The study results also indicate that the speed of achieving that target level of efficiency of sample companies is moderate. From the beta values of regression results it is also observed that IT companies are more efficient in intellectual capital management with regard to target level as compared to banks and pharmaceutical companies.
This is the first study in the IC literature that applies partial adjustment model to examine the speed of achieving target efficiency level by an individual knowledge company. However, this study confined to knowledge companies only.
Keywords
Intellectual Capital, Knowledge Company, VAICTM, Partial Adjustment Model.- Measuring the Efficiency and Value of Intellectual Capital in Indian Knowledge Companies
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Authors
Affiliations
1 Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
1 Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
Source
Journal of Commerce and Accounting Research, Vol 5, No 4 (2016), Pagination: 10-17Abstract
Intellectual capital is becoming the most important resource for creating value and competitive advantage in today's economy. The aim of this study is to investigate the correlation between the performance of a company's intellectual capital and the value of intellectual capital at a particular time. This study is conducted on 50 software and pharmaceutical companies operating in India. Annual reports, especially the profit & loss accounts and balance sheets of the companies have been used to obtain the data. Necessary data were also collected from official website of BSE and NSE. Value Added Intellectual Coefficient (VAICTM) method is applied for measuring the Intellectual Capital performance of the company. Monetary value of IC is calculated by applying Calculated Intangible Value method. The value creation efficiency of intellectual capital and value of intellectual capital also compared on the basis of rank. Findings from the empirical analysis indicate that the relationships between the performance of a company's intellectual capital and value of IC at a particular time are significantly related. The empirical findings suggest that the efficient management of company's intellectual capital can enhance its IC value. Intellectual capital is an area of interest to numerous parties, e.g. shareholders, managers, policy makers, institutional investors. This paper provides new insights related to the management and measurement of IC, since two specific measurement methods (CIV and VAICTM) were implemented in practice.Keywords
Intellectual Capital, Human Capital, Structural Capital, VAICTM, Calculated Intangible Value.- An Empirical Study in Sustainability Reporting Practices of Indian Small and Medium-Sized Enterprises
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Authors
Affiliations
1 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
2 Research Scholar, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
1 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
2 Research Scholar, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
Source
Journal of Commerce and Accounting Research, Vol 10, No 1 (2021), Pagination: 67-76Abstract
The present study is undertaken to examine to what extent sustainability guidelines, national and international, are followed by the Indian SMEs. The main objective of this study is to examine the sustainability disclosure practices of Indian SMEs. For this purpose, 25 SMEs are considered which are listed in BSE SME and their annual reports for the year 2018-19 are examined. The present study indicates that sustainability issues are of the highest priority but still in their nascent stage particularly among the Indian SMEs. Based on content analysis, the study result shows that the overall disclosure level of sustainability issues is moderate. This pilot study provides an idea about the sustainability reporting practices of Indian Small and Medium-sized Enterprises. Despite some limitations, this is the first study that examines the extent of sustainability reporting practices voluntarily following national and international guidelines.Keywords
Sustainability, Reporting, Content Analysis, SMEs, Sustainability Standard, Responsibility Reporting.References
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- Climate Risk and Financial Performance of Energy Companies – A Cross-Country Analysis
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Authors
Affiliations
1 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, Purulia, West Bengal, India., IN
2 Research Scholar, Sidho-Kanho-Birsha University, West Bengal, India., IN
1 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, Purulia, West Bengal, India., IN
2 Research Scholar, Sidho-Kanho-Birsha University, West Bengal, India., IN
Source
International Journal of Financial Management, Vol 12, No 1 (2022), Pagination: 11-22Abstract
Climate change imposes greater physical, transitional, as well as regulatory risks, on the firm’s financial and operational activities. However, while evaluating the performance of the firms, the traditional financial performance indicators do not incorporate climate risk. Without integrating climate risk in the traditional performance indicators, the firms may be misleading the investors and other stakeholders by claiming higher achievement and better performance. Hence, this paper has tried to examine the firm’s performance after integrating climate risk with the traditional financial indicators. Our results provide evidence that climate risk significantly affects the financial performance of firms. More specifically, energy companies from developing countries are more exposed to climate risk, than those located in developed countries. The study also revealed that companies from the developed countries have generated a higher amount of revenue and profit, but they (except Australia) are not able to transfer the company’s methods of working to lower emissions production.Keywords
Climate Risk, Integrated Ratios, Financial Performance, Energy IndustryReferences
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- Credit Risk Management and Financial Performance of Indian Commercial Banks: A Study
Abstract Views :210 |
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Authors
Affiliations
1 Research Scholar, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
2 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
1 Research Scholar, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
2 Associate Professor, Department of Commerce, Sidho-Kanho-Birsha University, West Bengal, IN
Source
International Journal of Financial Management, Vol 12, No 2 (2022), Pagination: 26-37Abstract
Credit risk is a major risk to commercial banks and financial institutions. Credit risk of financial institutions is inherent with the nature of the business, and should be managed well for their survival. The present study examines the role of credit risk management and its impact on the financial performance of commercial banks in India. For the study, secondary financial data are collected from published annual reports of 20 commercial banks, consisting of 12 public sector commercial banks and eight private sector commercial banks, covering six years, from 2013-14 to 2018-19. Risk of commercial banks is measured through non-performing loan ratio, capital adequacy ratio, loan loss provision ratio, cost per loan ratio, and leverages of sample banks. Financial performance of banks is measured through three alternative measures of profitability, namely return on assets, return on equity, and net interest margin. Pooled data are used for panel regression analysis. Empirical study results revealed mixed and varied indication about credit risk management and its influence on the financial performance of commercial banks. The study results indicate that profitability of the banks is falling due to increasing NPAs. However, the capital adequacy ratio enhances the profitability of public sector banks more than the private sector commercial banks.Keywords
Commercial Banks, NPAs, Profitability, Credit Risk Management, Panel Regression Analysis, IndiaReferences
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