Disclosure of financial statements is an important topic both for investors and for preparers as disclosure allows investors to understand the application of the accounting principles used by ...companies. This research examines the 2010 financial statements under IFRS of 189 Italian listed groups and their compliance with mandatory disclosure on intangible assets and presents an in depth empirical analysis of the Italian market—that belongs to the Continental European accounting cluster. Different variables were tested to analyze the compliance with the mandatory disclosure such as size variables, performance variables, financial interest variables and market variables. Many studies on mandatory disclosure are based on one disclosure index method and results are affected by the different approaches used: Cooke's dichotomous approach, Partial Compliance method, weighted and unweighted. In this paper, the decision was taken to run all the previous methods: results show that the only significant variable for all Dscore indexes is the weight of interests on revenues and this result is a distinctive feature of the Italian market where the role of the banking systems is more important than in other countries.
Purpose
The purpose of this paper is to investigate the relationship between intellectual capital (IC), measured in terms of the market to book (MTB) ratio, and potential key determinants of IC value ...such as intangible assets (IA) and a range of other factors.
Design/methodology/approach
The study is conducted for a sample of 140 Italian corporations over the period 2009-2013. Applying a holistic market-based approach, the relationship between IC value and selected determinants from the extant literature is tested. Five hypotheses are tested using a pooled OLS regression model, while controlling for time. ROE is employed as a useful firm profitability indicator from the perspective of an equity investor. Moreover, four robustness tests are undertaken.
Findings
The results show that IA, profitability, leverage, industry type, auditor type, and family ownership positively affect IC value, whereas SIZE and AGE negatively affect IC value. Moreover, the findings of the robustness tests suggest that all firms, and not just knowledge-intensive business service industry firms, manage knowledge.
Research limitations/implications
The validity of the findings is limited to the Italian context, as the study focuses on a sample of companies listed on the Milan Stock Exchange, all of which prepare their individual financial statements according to IFRS. Further limitations are related to the use of market value in the short term, as it is influenced by market volatility. The study may allow academic researchers to investigate the impact of other non-accounting sources of information on market value within a multidisciplinary perspective.
Practical implications
This paper also has implications for managers and practitioners. The findings suggest that managers should not take for granted that firm growth (an increase in SIZE) alone will lead to an increase in IC value, in the absence of a consistent IC-oriented investment strategy. Managers should also avoid smoothing their IC investment as the company grows, in order to maintain a stable MTB ratio. Further, standard setters should seek to explore better means of disclosing non-accounting information relating to IC value.
Originality/value
This paper contributes to the IC literature as it is the first study which applies the market capitalization approach to analyze IC value determinants in the Italian context, within the framework of IFRS. The findings reveal some interesting relationships between the MTB ratio and recognized intangible investments, which are found to be insignificant in previous studies, confirming that, through the holistic effect, the MTB ratio may be a good proxy for IC.
Based on the advancement of the globalization process, the dynamics of all economic flows is very high, with the service sector registering ever higher rates. The main analytical objective was to ...capture the specific characteristics of services. The hypotheses that were tested during this paper were: the process of redefining the fundamentals of competitiveness; the functional mechanisms of the services market; Romania still lags far behind the developed countries in terms of taking on the challenges arising from tertiarization; competitiveness is the catalyst for performance and Romanian decision makers must seek to capitalize on latent competitive strengths, take opportunities and create a business climate that is conducive to performance and efficiency. The factors stressed most on in this paper are those that contribute to increasing the level of competitiveness. The diagnosis of competitiveness at the level of tourism services was made using the most relevant indicators used in this sector.
PurposeThe purpose of this study is to find evidence of the impact of intellectual capital on firm value, and, in turn, enhance the existing literature which lacks consensus on it. By employing some ...distinctive proxies for human capital, innovation capital, customer capital and process capital, this study might provide valuable information for firms to make strategic decisions.Design/methodology/approachThis study uses Tobin's Q to represent firm value and various variables to be the proxies for intellectual capitals. By utilizing firm-year observations, this study applies panel data models first, and then Petersen regression models for further investigation to enhance the robustness of the empirical results.FindingsFirm value is affected positively by the average net profit per employee as well as goodwill and intangible assets. This is because firms having employees with abundant knowledge will possess advantage for innovation, and the excellent reputation, a part of goodwill for oriental firms, would encourage people to consume and invest more.Research limitations/implicationsThe constraint of data resource is the main limitation. With the limited scales and as an emerging market of Taiwan Stock Exchange, it is not confirmed whether the results are appropriate for the developed markets. Nevertheless, firms should make efforts on developing intellectual capital and corporate governance for operating businesses with competitiveness and safety.Originality/valueSince capable employees enhance the innovation, innovation improves customer's satisfaction and good customer relationship increases the sales; this study illustrates that for expanding businesses, firms should make more efforts on developing intellectual capital.
The article highlights the issues related to the regional specifics of investment activities in the Samarkand region. Formation and improvement of investment attraction mechanisms for the effective ...conduct of investment activities in the region, presentation of promising project proposals for a business wishing to invest, development and systematic implementation of high-quality projects, mutually beneficial cooperation with foreign partners, scientifically based proposals and recommendations. to create favorable conditions for the activities of investors, to attract investments.
Although there are many papers that examine the impact of intellectual capital on the performance of financial institutions, there are almost no papers that deal with developing markets. According to ...the author's knowledge, no one in Serbia has studied the effects of IC on financial institutions operating in the financial sector. This sector is extremely important for the Serbian economy since it is the leading sector in which the effects of modern information technologies are the most exploited and in which competitiveness is pursued by attracting new clients, by offering innovative solutions and services. Hence, the aim of this paper is to identify and analyze the IC's impact on financial performance in order to answer whether the impact of IC on the financial performance of financial institutions operating in developing markets has the same importance as the impact on financial institutions operating on developed markets, characterized by a high degree of innovation and IT equipment. The obtained results show that human and engaged capital have a statistically significant impact on financial performance, while structural capital does not.
This issue of the Economic and Business Review, titled "The Characteristics and Role of Intangible Capital in Central-Eastern Europe, the Balkans and in the Mediterranean," is devoted to examining ...the nature and role of intangible capital in the performance of economies, sectors, and firms throughout the region.
The objective of the study was to explore the dimensions of innovation in a public university in central Mexico during anti-COVID-19 policies of distancing and confinement of people. A ...cross-sectional, exploratory, psychometric and correlational research was carried out with a sample of 186, considering their professional practices and social service in public health institutions. The results show a structure of efficiency, usefulness and use. In relation to the state of the art, the structure of acceptance of the technology is corroborated, although in the pandemic scenario the dissolution of the second and third factors is appreciated, as well as the prevalence of the third factor
We address the phenomenon of country total risk, confounded by the risk of holding assets abroad and operating them in the foreign market. The findings point to deep differences in risk patterns as ...ownership of intangible assets exposes the holders to a higher risk. Indeed, the asset-specific risk is the dominant component of advance market volatility, explaining more than 80 percent of the cross-sectional variance. The model in the study accounts for the deficiencies in the related research streams and attempt to alleviate the typical problems in popular estimation methods.
The purpose of this article is to substantiate the theoretical and methodological foundations and practical recommendations for the development of anti-crisis management tools in the digital economy ...based on the cost criterion and intangible factors. Practice shows that the development of artificial intelligence, big data analytics, machine learning and the development of the mobile Internet open up new opportunities for enterprises and affect the business strategies of companies. The digital transformation of the economy has led to the emergence of challenges for management, which can be divided into the following groups: change in the business economy; changing the business model of the business; changes in business value factors. We substantiated that in the conditions of digitalization there is a need to form new anti-crisis tools, taking into account the features of both new digital companies and existing businesses, which adapt their activities in the conditions of digitalization. We have determined that the selection of anti-crisis tools in the digital environment will maintain a majority of cost indicators on the basis of which decisions are made, but the interpretation of these indicators changes as they adapt to assessing business performance in the digital economy. We believe that digital technologies are changing attitudes towards physical assets and increasing the role of intangibles. We substantiated that the main source of creating sustainable advantages of enterprises are intangible intellectual assets. We believe that the value of the enterprise obtained from intangible intellectual assets is equal to the difference between the market value of the enterprise and the value of tangible assets according to the model of valuation of real options. However, the model of real options indicates how much the value of the enterprise will increase with the effective use of intangible assets and does not give the absolute value of intangible assets. In this paper, we proposed the calculation of the lost benefit for owners from not taking into account the impact of intangible intellectual assets on the value of the enterprise.
