Human Capital Disclosure by the Listed Non-Financial Companies of Bangladesh
DOI:
https://doi.org/10.18034/ajtp.v5i3.441Keywords:
Human Capital, Disclosure, Bangladesh, Content AnalysisAbstract
Success of an enterprise very much depends on the composition of human capital of the entity. It is now established that human capital is important for the business organization and it may be disclosed in the annual report of the companies. The specific objectives of the paper are to examine the present status of HC disclosure in corporate annual report of the listed non-financial companies in Bangladesh and to summarize the perceptions of different stakeholders regarding this aspect. Contents analysis has been conducted on annual reports for the year 2008 and 2011 of 82 listed companies in Bangladesh. Perception survey has been conducted on 195 respondents for collecting primary data using five-level Likert scale. Results show that the average disclosure score is below 50 percent and over periods the status is not improving significantly. More than 50 percent companies have achieved less than 40 percent score and there is a large variation in score among the companies’ scores. As disclosure of HC items is a need of the stakeholders, companies should be careful about the matter and concern regulators may take initiative to improve the disclosure status of the companies.
Downloads
References
Abeysekera, I & Guthrie, J. 2004. Human capital reporting in a developing nation. British Accounting Review 36 (3): 251-268. DOI: https://doi.org/10.1016/j.bar.2004.03.004
Abeysekera, I. 2007. Intellectual capital reporting between a developing and developed nation. Journal of Intellectual Capital 8 (2): 329-345. DOI: https://doi.org/10.1108/14691930710742871
Abeysekera, I. 2008. Intellectual capital disclosure trends: Singapore and Sri Lanka. Journal of Intellectual Capital 9 (4): 723-737. DOI: https://doi.org/10.1108/14691930810913249
Abeysekera, I. and Guthrie, J. 2005. An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka”. Critical Perspectives on Accounting 16 (3): 151-163. DOI: https://doi.org/10.1016/S1045-2354(03)00059-5
Ahmed, A. A. and Dey, M. M. 2009. An Empirical Analysis of Performance Measurement of the Disclosure in Financial Reporting: A Study of Banking Sector in Bangladesh. Paper presented at the 2nd COMSATS International Business Research Conference, COMSATS Institute of Information Technology, 14 November 2009, Lahore, Pakistan.
Akhtaruddin, M. 2005. Corporate mandatory disclosure practices in Bangladesh. The International Journal of Accounting 40 (4): 399-422.
Ali, M.M, Khan, M.H.U.Z, and Fatema, Z. K. 2008. Intellectual Capital (IC) Reporting Practices: A Study on Selected Companies in Bangladesh. Journal of Business Studies 29 (1): 81-104.
Andriessen, D. 2004. IC valuation and measurement: Classifying the state-of-the-art. Journal of Intellectual Capital 5 (3): 230-242, cited in Bruggen, A., Vergauwen, P. and Dao, M. 2009. Determinants of intellectual capital disclosure: evidence from Australia. Management Decision 47 (2): 233-245.
April, K.A., Bosma, P. and Deglon, D.A. 2003. IC measurement and reporting: establishing practice in SA mining. Journal of Intellectual Capital 4 (2): 165-180. DOI: https://doi.org/10.1108/14691930310472794
Batista Fontana, F. and Macagnan, C.B. 2013. Factors explaining the level of voluntary human capital disclosure in the Brazilian capital market. Intangible Capital 9 (1): 305-321. DOI: https://doi.org/10.3926/ic.315
Bhuiyan, M.H.U. and Biswas, P.K. 2007. Corporate Governance and Reporting: An Empirical Study of the Listed Companies in Bangladesh. Journal of Business Studies 28 (1).
Bontis, N. 1998. Intellectual Capital: an exploratory study that develops measures and models. Management Decision 36 (2): 63-76. DOI: https://doi.org/10.1108/00251749810204142
Bontis, N. 2003. Intellectual capital disclosure in Canadian corporations. Journal of Human Resource Costing & Accounting 7 (1): 9-20. DOI: https://doi.org/10.1108/eb029076
Bontis, N., Keow, W. C. C., and Richardson, S. 2000.) Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital 1: 85-100, cited in Khalique, M., Shaari, J.A.N., Isa, A.H.M. and Ageel, A. 2011. Role of Intellectual Capital on the Organizational Performance of Electrical and Electronic SMEs in Pakistan. International Journal of Business and Management 6 (9): 253-257.
Bozzolan, S., Favotto, F. and Ricceri, F. 2003. Italian annual intellectual capital disclosure. Journal of Intellectual Capital 4 (4): 543-558. DOI: https://doi.org/10.1108/14691930310504554
Brennan, N. 2001. Reporting intellectual capital in annual reports: evidence from Ireland. Accounting, Auditing and Accountability Journal 14 (4): 423-436. DOI: https://doi.org/10.1108/09513570110403443
Bruggen, A., Vergauwen, P. and Dao, M. 2009. Determinants of intellectual capital disclosure: evidence from Australia. Management Decision 47 (2): 233-245. DOI: https://doi.org/10.1108/00251740910938894
Chander, S. and Mehra, V. 2011 A study on intangible assets disclosure: An evidence from Indian companies. Intangible Capital 7 (1): 1-30. DOI: https://doi.org/10.3926/ic.2011.v7n1.p1-30
Chen, Mei-Chun. 2001. The effect on enterprise performance by information technology investment and intellectual capital. Ph.D. thesis, Department of Information Management, National Central University, Taiwan, cited in Wu, MeiFen, Lee, Yu-Je and Wang, Gao-Liang. 2012. To Verify How Intellectual Capital Affects Organizational Performance in Listed Taiwan IC Design Companies with Considering the moderator of Corporate Governance. The Journal of Global Business Management 8 (1), retrieved from www.jgbm.org, on June 12, 2014.
Córcoles, Yolanda Ramírez. 2013. Importance of intellectual capital disclosure in Spanish universities. Intangible Capital 9 (3): 931-944.
Davey, J., Schneider, L. and Davey, H. 2009. Intellectual capital disclosure and the fashion industry. Journal of Intellectual Capital 10 (3): 401-442. DOI: https://doi.org/10.1108/14691930910977815
Dhaka Stock Exchange (DSE). 2008. Monthly Review 23 (6). Dhaka
Dumay, J.C. 2009. Intellectual capital measurement: a critical approach. Journal of Intellectual Capital 10 (2): 190-210. DOI: https://doi.org/10.1108/14691930910952614
Edvinsson, L., and Malone, M. 1997. Intellectual Capital: Realising Your Company's True Value by Finding its Hidden Brainpower, New York: Harper Business (a division of Harper Collins Publishers).
Goh, P.C. and Lim, K.P. 2004. Disclosing intellectual capital in company annual reports: evidence from Malaysia. Journal of Intellectual Capital 5 (3): 500-510. DOI: https://doi.org/10.1108/14691930410550426
González-Loureiro, M. and Dorrego, P. F. 2012. Intellectual Capital and System of Innovation: What really Matters at Innovative SMEs. Intangible Capital 8 (2): 239-274, http://dx.doi.org/10.3926/ic.273. DOI: https://doi.org/10.3926/ic.273
Guthrie, J. and Petty, R. 2000. Intellectual capital: Australian annual reporting practices. Journal of Intellectual Capital 1 (3): 241-251. DOI: https://doi.org/10.1108/14691930010350800
Guthrie, J., Petty, R. and Ricceri, F. 2007. Intellectual capital reporting: Lessons from Hong Kong and Australia. available at http://www.icas.org.uk/site/cms/download/res_Guthrie_Report.pdf, accessed on June 6, 2011.
Guthrie, J., Steane, P. amd Farneti, F. 2009. IC reporting in the Australian Red Cross blood service. Journal of Intellectual Capital 10 (4): 504-519. DOI: https://doi.org/10.1108/14691930910996616
Hossain, D.M., Amirus, S. and Al-Amin. 2005. Voluntary Disclosure on Corporate Social Responsibility: A Study on the Annual Reports of Bangladeshi Companies. The Bangladesh Accountant 47 (20).
Hossain, D.M., Khan, A.R. and Yasmin, I. 2004. The Nature of Voluntary Disclosure on Human Resource in the Annual Reports of Bangladeshi Companies. Dhaka University Journal of Business Studies 25 (1): 221-231.
Hossain, M. A. 1999. Disclosure of Information in Corporate Annual Reports of Listed Non-financial Companies in Developing Countries: A comparative Study of India, Pakistan and Bangladesh. Unpublished Ph.D. Thesis, School of Accounting and Finance, The Manchester University.
Hossain, M. A., Islam, M. K. S., and Andrew, J. 2006. Corporate Social and Environmental Disclosure in Developing Countries: Evidence from Bangladesh. Retrieved from http://ro.uow.edu.au/commpapers /179.
Hossain, M. M. 2011. Intellectual Capital Disclosure by the Listed Fuel & Power and Engineering Firms in Bangladesh. Asian Accounting and Auditing Advancement 1 (3): 221-243.
Hossain, M. M. 2012. Financial Statement of Banks under Islamic Shariah: Status of Regulatory Compliance. Thoughts on Economics 22 (1): 53-67.
Hossain, M. M. 2015. Corporate Governance and Intellectual Capital Reporting in Corporate Annual Reports of Emerging Economies: An Empirical Investigation of Listed Companies in Bangladesh. Unpublished Ph.D. Dissertation, Institute of Business Administration, Rajshahi University.
Hossain, M. M. and Khatun, M. 2014. Disclosure Compliance of Islamic Banks in Bangladesh: Local and International Regulatory Perspective. Journal of Islamic Economics, Banking and Finance 10 (4): 74-88.
Hossain, M.A and Taylor, P.J. 1998. Extent of disclosure in corporate annual report in developing countries: A comparative study of India, Pakistan and Bangladesh. Paper presented to the Cardiff School Business School Conference in Financial Reporting (held in 6-7 July), cited from Akhtaruddin, M. 2005. Corporate mandatory disclosure practices in Bangladesh. The International Journal of Accounting 40 (4): 399-422.
Hossain, M.A, Cooper, K, and Islam, K.S. 2006. Compliance with IASs: The Case of Bangladesh. Paper presented at the Seventh Asian Accounting Association Conference, 17th-19th September, Sydney, Australia.
Hossain, M.A. 2000. An evaluation of the international accounting standards in developing countries: A case study of Bangladesh. An Unpublished Research Report, Faculty of Business Studies, Rajshahi University, cited from Akhtaruddin, M. 2005. Corporate mandatory disclosure practices in Bangladesh. The International Journal of Accounting 40 (4): 399-422.
Islam, M. 2006. Compliance with Disclosure Requirements by Four SAARC Countries-Bangladesh, India, Pakistan and Sri Lanka. Journal of American Academy of Business 10 (1): 348-356.
Johnson, K. 1999. Making loyalty program more rewarding Direct Mark 61 (11): 24-27, cited in Wu, MeiFen, Lee, Yu-Je and Wang, Gao-Liang. 2012. To Verify How Intellectual Capital Affects Organizational Performance in Listed Taiwan IC Design Companies with Considering the moderator of Corporate Governance. The Journal of Global Business Management 8 (1), retrieved from www.jgbm.org, on June 12, 2014.
Joshi, M., Ubha, D.S., and Sidhu, J. 2010. Reporting Intellectual Capital In Annual Reports From Australian S/W & I/T Companies. Journal of Knowledge Management Practice 11 (3), accessed from www.tlainc.com/articl236.htm, on June 5, 2011.
Karim, A.K.M.W. 1995. Provision of Corporate Financial Information in Bangladesh. Unpublished PhD Thesis, The University of Leeds, UK.
Kavida, V and Sivakoumar, N. 2009. Intellectual Capital: A Strategic Management Perspective. The ICFAI Journal of Knowledge Management 7 (5/6): 55-69.
Khan, M.H.U.Z and Khan, M.R. 2010. Human capital disclosure practices of top Bangladeshi companies. Journal of Human Resource Costing & Accounting 14 (4): 329 – 349. DOI: https://doi.org/10.1108/14013381011105984
Knight, D. J. 1999. Performance Measures for Increasing Intellectual Capital. Strategy & Leadership 27 (2): 22-25 cited in Wu, MeiFen, Lee, Yu-Je and Wang, Gao-Liang. 2012. To Verify How Intellectual Capital Affects Organizational Performance in Listed Taiwan IC Design Companies with considering the moderator of Corporate Governance. The Journal of Global Business Management 8 (1), retrieved from www.jgbm.org, on June 12, 2014.
Lipunga, A.M. 2013. Visualization of Intellectual Capital disclosures in annual reports of commercial banks of Malawi. Interdisciplinary Journal of Contemporary Research in Business 5 (3): 155-169.
Majdalany, G. and Henderson, J. 2013. Voluntary disclosure of intellectual assets and intellectual liabilities: Impact on financial performance in publicly listed firms in the United Arab Emirates. Electronic Journal of Knowledge Management 11 (4): 325-338, available at www.ejkm.com.
Nurunnabi, M., Hossain, M.A. and Hossain, M.M. 2011. Intellectual capital reporting in a South Asian country: Evidence from Bangladesh. Journal of Human Resource Costing & Accounting (JHRCA) 15 (3): 196-231. DOI: https://doi.org/10.1108/14013381111178587
Oliveira, L., Rodrigue L. L. and Craig, R. 2006. Firm-specific determinants of intangibles reporting: evidence from the Portuguese stock market. Journal of Human Resource Costing & Accounting 10 (1): 11-33. DOI: https://doi.org/10.1108/14013380610672657
Orens, R., Aerts, W, and Lybaert, N. 2009. Intellectual capital disclosure: cost of finance and firm value. Management Decision 47 (10): 1536-1554. DOI: https://doi.org/10.1108/00251740911004673
Ortiz, M.A.A. 2009. Analysis and valuation of intellectual capital according to its context. Journal of Intellectual Capital 10 (3): 451-482. DOI: https://doi.org/10.1108/14691930910977833
Pandit, A. C., Hossain, M. M. and Khatun, M. 2011. Disclosure Requirements of Banks: Bangladesh Perspective. Banking Research Series 2011, Paper 3, pp. 71-116, BIBM, Dhaka.
Rahman, M.M. 1999. The Extent of Mandatory and Voluntary Financial Disclosure by Listed Companies in Bangladesh. Dhaka University Journal of Business Studies 20 (1): 189-208.
Rouf, M. A. and Hossain, M. M. 2011. The Corporate Social Responsibility Disclosure: A Study of Listed Companies in Bangladesh. Bank Parikrama, Vol. 35 & 36, pp. 78-99.
Stewart, T.A. 1997. Intellectual Capital: The New Wealth of Organizations, Nicholas Brealey, London.
Sujan, A and Abeysekera, I. 2007. Intellectual capital reporting practices of the top Australian firms. Australian Accounting Review 17 (2): 71-83. DOI: https://doi.org/10.1111/j.1835-2561.2007.tb00445.x
Sveiby, K.E. 1997. The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets, Berrett-Koehler Publishers, Inc. San Francisco.
Tovstiga, G. and Tulugurova, E. 2009. Intellectual capital practices: a four-region comparative study. Journal of Intellectual Capital 10 (1): 70-80. DOI: https://doi.org/10.1108/14691930910922905
Vandemaele, S.N., Vergauwen, P.G.M.C., and Smits, A.J. 2005. Intellectual capital disclosure in The Netherlands, Sweden and the UK: A longitudinal and comparative study. Journal of Intellectual Capital 6 (3): 417-426. DOI: https://doi.org/10.1108/14691930510611148
Verbano, C. and Crema, M. 2013. Measuring IC following a semi-qualitative approach: An integrated framework. Intangible Capital 9 (3): 539-558, retrieved from http://dx.doi.org/10.3926/ic.427. DOI: https://doi.org/10.3926/ic.427
Vergauwen, P.G.M.C. and van Alem, F.J.C. 2005. Annual report IC disclosures in The Netherlands, France and Germany. Journal of Intellectual Capital 6 (1): 89-104. DOI: https://doi.org/10.1108/14691930510574681
Wallace, R. S. O. 1988. Corporate financial reporting in Nigeria. Accounting and Business Research 18 (72): 352-362, cited in Akhtaruddin, M. 2005. Corporate mandatory disclosure practices in Bangladesh. The International Journal of Accounting 40 (4): 399-422. DOI: https://doi.org/10.1016/j.intacc.2005.09.007
Wong, M. and Gardner, C. 2005. Intellectual capital disclosure: New Zealand evidence. AFAANZ, available at: www.afaanz.org /web2005/papers/ gardnerc.pdf, accessed on April 20, 2010.
Wu, MeiFen, Lee, Yu-Je and Wang, Gao-Liang. 2012. To Verify How Intellectual Capital Affects Organizational Performance in Listed Taiwan IC Design Companies with Considering the moderator of Corporate Governance. The Journal of Global Business Management 8 (1), retrieved from www.jgbm.org, on June 12, 2014.
Xiao, H. 2008. Corporate Reporting of Intellectual Capital: Evidence from China. The Business Review 11 (1): 124-129.
Xinyu, Z. 2014. The impacts of intellectual capital of China’s public pharmaceutical company on company’s performance. Journal of Chemical and Pharmaceutical Research 6 (4): 999-1004, available at www.jocpr.com.
Zéghal, D. and Maaloul, A. 2010. Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital 11 (1): 39-60. DOI: https://doi.org/10.1108/14691931011013325
--0--
Downloads
Published
How to Cite
Issue
Section
License
American Journal of Trade and Policy is an Open Access journal. Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal the right of first publication with the work simultaneously licensed under a CC BY-NC 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of their work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal. We require authors to inform us of any instances of re-publication.
