Intellectual Capital and Disclosure Practices of Miscellaneous Industries: Evidence from Cable Companies in Indonesia
Abstract
The important role of intellectual capital for value creation has led many companies to disclose their intellectual capital information in annual reports. This study aims to provide, via content analysis, an overview of the disclosure and presentation of intellectual capital information in the annual reports of cable companies listed on the Indonesia Stock Exchange in 2015. This study found that structural capital is the most common category of intellectual capital disclosed in the annual reports. In addition, most intellectual capital disclosures are discursive, with positive and past-oriented information. However, there is no systematic framework for disclosing intellectual capital information in annual reports. Disclosures made do not have a special pattern and are still random. This finding may contribute to an understanding of how companies communicate intellectual capital information for their own benefit, as well as the benefit of stakeholders, customers and employees.
References
Abeysekera, I., & Guthrie, J. (2004). Human capital reporting in a developing nation. British Accounting Review, 36(3), 251-268. https://doi.org/10.1016/j.bar.2004.03.004
Abeysekera, I., & Guthrie, J. (2005). An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka. Critical Perspectives on Accounting, 16, 151-163. https://doi.org/10.1016/S1045-2354(03)00059-5
Abhayawansa, S. (2011). A methodology for investigating intellectual capital information in analyst reports. Journal of Intellectual Capital, 12(3), 446-476. https://doi.org/10.1108/14691931111154733
Andriessen, D. (2004). IC valuation and measurement: classifying the state of the art. Journal of Intellectual Capital, 5(2), 230-242. https://doi.org/10.1108/14691930410533669
Anggraini, Y. D. (2013). Pemetaan pola pengungkapan intellectual capital perusahaan-perusahaan perbankan yang terdaftar pada Bursa Efek Indonesia Periode 2011. Calyptra: Jurnal Ilmiah Mahasiswa Universitas Surabaya, 2(2), 1-20.
April, K. A., Bosma, P., & Deglon, D. A. (2003). IC measurement and reporting: establishing a practice in SA mining. Journal of Intellectual Capital, 4(2), 165-180. https://doi.org/10.1108/14691930310472794
Astuti, P. D., Chariri, A., & Rohman, A. (2021). Tri hita karana's philosophy and intellectual capital: evidence from the hotel industry in Indonesia. Montenegrin Journal of Economics, 17(3), 169-180. https://doi.org/10.14254/1800-5845/2021.17-3.14
Backhuijs, J., Holterman, W., Oudman, R., Overgoor, R., & Zijlstra, S. (1999, June 9-10). Reporting on intangible assets. Measuring and Reporting Intellectual Capital: Experience, Issues, and Prospects. International Symposium, Technical Meeting, Amsterdam. https://www.oecd.org/industry/ind/1947807.pdf
Bontis, N. (1998). Intellectual capital: an exploratory study that develops measures and models. Management Decision, 36(2), 63-76. https://doi.org/10.1108/00251749810204142
Bontis, N. (2001). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41-60. https://doi.org/10.1111/1468-2370.00053
Bontis, N. (2003). Intellectual capital disclosure in Canadian corporations. Journal of Human Resource Costing & Accounting, 7(1), 9-20. https://doi.org/10.1108/eb029076
Bontis, N., Dragonetti, N. C., Jacobsen, K., & Roos, G. (1999). The knowledge toolbox: a review of the tools available to measure and manage intangible resources. European Management Journal, 17(4), 391-402. https://doi.org/10.1016/S0263-2373(99)00019-5
Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85-100. https://doi.org/10.1108/14691930010324188
Bornemann, M., & Leitner, K. H. (2002). Measuring and reporting intellectual capital: the case of a research technology organisation. Singapore Management Review, 24, 7-19.
Botosan, C. A. (1997). Disclosure level and the cost of equity capital. The Accounting Review, 72(3), 323-349.
Bozzolan, S., Favotto, F., & Ricceri, F. (2003). Italian annual intellectual capital disclosure. An empirical analysis. Journal of Intellectual Capital, 4(4), 543-558. https://doi.org/10.1108/14691930310504554
Brennan, N. (2001). Reporting intellectual capital in annual reports: evidence from Ireland. Accounting, Auditing & Accountability Journal, 14(4), 423-436. https://doi.org/10.1108/09513570110403443
Brennan, N., & Connell, B. (2000). Intellectual capital: current issues and policy implications. Journal of Intellectual Capital, 1(3), 206-240. https://doi.org/10.1108/14691930010350792
Breton, G., & Taffler, R. J. (2001). Accounting information and analyst stock recommendation decisions: a content analysis approach. Accounting and Business Research, 31(2), 91-101. https://doi.org/10.1080/00014788.2001.9729604
Bruggen, A., Vergauwen, P., & Dao, M. (2009). Determinants of intellectual capital disclosure: evidence from Australia. Management Decision, 47(2), 233-245. https://doi.org/10.1108/00251740910938894
Bukh, P., Larsen, H., & Mouritsen, J. (2001). Constructing intellectual capital statements. Scandinavian Journal of Management, 17, 87-108. https://doi.org/10.1016/S0956-5221(00)00034-8
Cañibano, L., Covarsí, M. G. A., & Sánchez, M. P. (1999). The value relevance and managerial implications of intangibles: a literature review. https://www.oecd.org/sti/ind/1947974.pdf
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: concepts, evidence, and implications. Academy of Management, 20(1), 65-91. https://doi.org/10.5465/amr.1995.9503271992
Edvinsson, L. (1997). Developing intellectual capital at Skandia. Long Range Planning, 30(3), 366-373. https://doi.org/10.1016/S0024-6301(97)90248-X
Fincham, R., & Roslender, R. (2003). Intellectual capital accounting as management fashion: a review and critique. European Accounting Review, 12(4), 781-795. https://doi.org/10.1080/09638180310001628464
Gelb, D. S., & Zarowin, P. (2002). Corporate disclosure policy and the informativeness of stock prices. Review of Accounting Studies, 7, 33-52. https://doi.org/10.1023/A:1017927530007
Grojer, J., & Johanson, U. (1999, June). Voluntary guidelines on the disclosure of intangibles: a bridge over troubled water? [Paper presentation]. International Symposium Measuring and Reporting Intellectual Capital: Experiences, Issues and Prospects, Amsterdam.
Guthrie, J., Johanson, U., Bukh, P., & Sanchez, P. (2003). Intangibles and the transparent enterprise: new strands of knowledge. Journal of Intellectual Capital, 4(4), 429-440. https://doi.org/10.1108/14691930310504491
Guthrie, J., & Parker, L. D. (1989). Corporate social reporting: a rebuttal of legitimacy theory. Accounting and Business Research, 19(76), 343-352. https://doi.org/10.1080/00014788.1989.9728863
Guthrie, J., & Petty, R. (2000). Intellectual capital: Australian annual reporting practices. Journal of Intellectual Capital, 1(3), 241-251. https://doi.org/10.1108/14691930010350800
Guthrie, J., Petty, R., Ferrier, F., & Wells, R. (1999). There is no accounting for intellectual capital in Australia: a review of annual reporting practices and the internal measurement of intangibles. OECD Symposium on Measuring and Reporting of Intellectual Capital, 1-134. https://doi.org/10.1108/14691930010350800
Guthrie, J., Petty, R., & Ricceri, F. (2006). The voluntary reporting of intellectual capital. Comparing evidence from Hong Kong and. Journal of Intellectual Capital, 7(2), 254-271. https://doi.org/10.1108/14691930610661890
Guthrie, J., Petty, R., & Yongvanich, K. (2004). Using content analysis as a research method to inquire into intellectual capital reporting. Journal of Intellectual Capital, 5(2), 282-293. https://doi.org/10.1108/14691930410533704
Healy, P. M., Hutton, A. P., & Palepu, K. G. (1999). Stock performance and intermediation changes surrounding sustained increases in disclosure. Contemporary Accounting Research, 16(3), 485-520. https://doi.org/10.1111/j.1911-3846.1999.tb00592.x
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. Journal of Accounting and Economics, 31, 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0
Jelčić, K. (2007). Intellectual capital: handbook of IC management in companies. http:www2.hgk.hr/hrdc/IC_Management-Handbook.pdf.
Meer-Kooistra, J. van der M., & Ziljstra, S. M. (2001). Reporting on intellectual capital. Accounting, Auditing & Accountability Journal, 14(4), 456-476. https://doi.org/10.1108/09513570110403461
Lambert, R. A. (1998). Customer satisfaction and future financial performance discussion of are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36, 37-46. https://doi.org/10.2307/2491305
Leadbeater, C. (1999). New measures for the new economy. International Symposium Measuring and Reporting Intellectual Capital: Experience, Issues, and Prospects, 1-42.
Lindblom, C. (1994). The implications of organizational legitimacy for corporate social performance and disclosure [Paper presentation]. Critical Perspectives on Accounting Conference, New York.
Olsson, B. (2001). Annual reporting practices: information about human resources in corporate annual reports in major Swedish companies. Journal of Human Resource Costing & Accounting, 6(1), 39-52. https://doi.org/10.1108/eb029071
Petty, R. (2003). The disclosure of intangible information by listed companies in Hong Kong.
Roos, J., Roos, G., Dragonetti, N. C., & Edvinsson, L. (1997). Intellectual capital: navigating in the new business landscape. Macmillan Press. https://doi.org/10.1007/978-1-349-14494-5
Sengupta, P. (1998). Corporate disclosure quality and the cost of debt. The Accounting Review, 73(4), 459-474.
Stewart, T. A. (1997). Intellectual capital: the new wealth of organizations. Doubleday.
Stewart, T. A. (2001). The wealth of knowledge: intellectual capital and the twenty first century organization. Doubleday.
Subbarao, A., & Zeghal, D. (1997). Human resources information disclosure in annual reports: an international comparison. Journal of Human Resource Costing and Accounting, 2(2), 53-73. https://doi.org/10.1108/eb029039
Sveiby, K. E. (1997). The new organizational wealth. Managing & measuring knowledge-based assets. Berrett-Koehler.
Sveiby, K. E. (1998). Measuring intangibles and intellectual capital-an emerging first standard. https://www.sveiby.com/files/pdf/measuring-intangibles-and-intellectual-capital.pdf
Vergauwen, P. G., & van Alem, F. J. (2005). Annual report IC disclosures in The Netherlands, France and Germany. Journal of Intellectual Capital, 6(1), 89-104. https://doi.org/10.1108/14691930510574681
Whiting, R. H., & Woodcock, J. (2011). Firm characteristics and intellectual capital disclosure by Australian companies. Journal of Human Resource Costing & Accounting, 15(2), 102-126. https://doi.org/10.1108/14013381111157337
Williams, S. M. (2001). Is intellectual capital performance and disclosure practices related? Journal of Intellectual Capital, 2(3), 192-203. https://doi.org/10.1108/14691930110399932
Copyright (c) 2021 Partiwi Dwi Astuti
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright Transfer Statement for Journal
1) In signing this statement, the author(s) grant UNIMAS Publisher an exclusive license to publish their original research papers. The author(s) also grant UNIMAS Publisher permission to reproduce, recreate, translate, extract or summarize, and to distribute and display in any forms, formats, and media. The author(s) can reuse their papers in their future printed work without first requiring permission from UNIMAS Publisher, provided that the author(s) acknowledge and reference publication in the Journal.
2) For open access articles, the author(s) agree that their articles published under UNIMAS Publisher are distributed under the terms of the CC-BY-NC-SA (Creative Commons Attribution-Non Commercial-Share Alike 4.0 International License) which permits unrestricted use, distribution, and reproduction in any medium, for non-commercial purposes, provided the original work of the author(s) is properly cited.
3) For subscription articles, the author(s) agree that UNIMAS Publisher holds copyright, or an exclusive license to publish. Readers or users may view, download, print, and copy the content, for academic purposes, subject to the following conditions of use: (a) any reuse of materials is subject to permission from UNIMAS Publisher; (b) archived materials may only be used for academic research; (c) archived materials may not be used for commercial purposes, which include but not limited to monetary compensation by means of sale, resale, license, transfer of copyright, loan, etc.; and (d) archived materials may not be re-published in any part, either in print or online.
4) The author(s) is/are responsible to ensure his or her or their submitted work is original and does not infringe any existing copyright, trademark, patent, statutory right, or propriety right of others. Corresponding author(s) has (have) obtained permission from all co-authors prior to submission to the journal. Upon submission of the manuscript, the author(s) agree that no similar work has been or will be submitted or published elsewhere in any language. If submitted manuscript includes materials from others, the authors have obtained the permission from the copyright owners.
5) In signing this statement, the author(s) declare(s) that the researches in which they have conducted are in compliance with the current laws of the respective country and UNIMAS Journal Publication Ethics Policy. Any experimentation or research involving human or the use of animal samples must obtain approval from Human or Animal Ethics Committee in their respective institutions. The author(s) agree and understand that UNIMAS Publisher is not responsible for any compensational claims or failure caused by the author(s) in fulfilling the above-mentioned requirements. The author(s) must accept the responsibility for releasing their materials upon request by Chief Editor or UNIMAS Publisher.
6) The author(s) should have participated sufficiently in the work and ensured the appropriateness of the content of the article. The author(s) should also agree that he or she has no commercial attachments (e.g. patent or license arrangement, equity interest, consultancies, etc.) that might pose any conflict of interest with the submitted manuscript. The author(s) also agree to make any relevant materials and data available upon request by the editor or UNIMAS Publisher.
