INTELLECTUAL CAPITAL MANAGEMENT

Intellectual Capital Management

Table of Contents

Abstract3

Chapter 14

Introduction4

Aims and Objectives11

Chapter 213

Literature Review13

Table 1.17

Table 2.19

The impetus behind the intellectual capital term theory23

Intellectual capital taxonomy25

Intellectual capital in public administration27

Government-to-government initiatives and intangible assets in the public arena30

Models for managing intellectual capital35

Chapter 336

Research Methodology36

Defining IC categories and elements37

Scope of reports analysed38

Identifying and quantifying ICDs42

Chapter 453

Results and Findings53

Location and type of IC disclosure58

Unit of analysis and unit of measurement61

Chapter 567

Discussion67

The volume of disclosure73

Human capital76

Human resources diffusion77

Relational capital78

Cluster and spin-off effect79

Fig. 3. Relationships of ITRI and collaborative partners.80

Structural capital81

The emergence of ethical knowledge in intellectual capital statements82

Chapter 695

Conclusion95

References107

Abstract

This procedures paper best features exact matters that originate in utilising content investigation to enquire intellectual capital (IC) disclosures. The use of content investigation in the IC context is argued through an investigation of former investigations and the use of an illustrative example. It is resolved that the deepness and wideness of the IC notion and the need of widespread definitive dialect make it tough to set up the span and environment of revelation actually provided. The variety of alternatives accessible to investigators in periods of investigating and assessing IC revelations farther hinders understanding and comparability. Transparency in the alternatives made is required. Shared meanings could be evolved and the IC notion better appreciated through expanded transparency in the categorisation of IC data, which in turn could farther aid in the understanding and evaluation of outcome over studies.

Chapter 1

Introduction

Content analysis has become a widely used method of analysis in financial accounting research (Beattie, 2005). In recent years, several papers in accounting journals have identified and discussed significant issues regarding the use of content analysis to investigate accounting disclosures. One strand of this literature takes corporate social reporting (CSR) as its context (i.e. Hackston & Milne, 1996; Milne & Adler, 1999; Unerman, 2000). More recently, the topic area of intellectual capital term (IC) disclosures has been explored (Abeysekera, 2006; Guthrie, Petty, Yongvanich, & Ricceri, 2004). The present paper contributes to the latter area of enquiry.

IC is the term attributed to intangible assets which create company value (Mouritsen, Larsen, & Bukh, 2001). It is, at least in part,1 reflected in the difference between market and book values, as the value and impact of intangibles are inadequately reflected in the traditional accounting framework (Cordon, 1998). To highlight the potential significance of IC, studies have reported market-to-book multiples in excess of unity. For example, Gu and Lev (2004) report that the S&P 500's average market-to-book ratio was 4.5 in September 2003 indicating for every US$ 4.5 of market value, only US$ 1 appears on the balance sheet. Beattie and Thomson (2005) found the mean market-to-book value for the UK FTSE 100 companies to be 2.52 based on data for year-end 2002/2003. In light of this evidence, a method for reporting IC information to external stakeholders appears to be required.

The term IC is now widely used among regulators, professional bodies and academics. Many attempts have been made at formal definition. However, according to Guthrie, Petty, & Johanson (2001), 'intellectual capital term frequently is poorly defined ...