Disclosure of Intellectual Capital in Annual Reports: An Empirical Study of the Listed Companies in Bangladesh (Published)
As the world economy is experiencing a transition from industrial to knowledge economy, intellectual capital (IC) has become a prominent feature of business transactions and discourse. Interest in IC and IC disclosure is rising in developed and developing countries. At present, Intellectual Capital Disclosure (ICD) is done voluntarily by very few leading corporations all around the world. Omission of ICD may adversely influence the quality of decisions made by users of accounting information or lead to material misstatements. Hence, rising importance of IC has necessitated insightful studies. With this background in mind, the study of 25 Bangladeshi knowledge based companies listed in Dhaka Stock Exchange (DSE) from Information Technology considered to be highly knowledge intensive has been undertaken in order to find out the disclosure level of recording and reporting of intellectual capital through content analysis of their corporate annual reports. It is evident from the study that level of intellectual capital reporting in the Bangladeshi companies is negligible and intellectual capital reporting has not received any preference or priority for the mentors of these corporations. On the basis the findings, the study recommends national and international accounting regulatory bodies to develop specific and uniform standard on identifying, measuring and reporting IC.
Human Resource Costs and Financial Performance: Evidence from Selected Listed Firms In Nigeria. (Published)
There is general lack of quantification and disclosure of human assets in domestic and international financial reports, and this appears to depress public assessment of the financial performance and value of firms. This study investigated the effect of human resource costs on the financial performance of firms in Nigerian. The specific objective is to determine the extent to which investments in human resources influence profit after tax and turnover of firms in Nigeria. Secondary data on relevant financial variables were extracted from published financial statements of ten selected listed firms in Nigeria. The OLS technique was employed in analyzing the data and the results indicate that personnel benefit costs have positive and significant effect on Profitability, explaining about 73.9% of the variations in Profit After Tax of firms in Nigeria. The results however reveal no significant effect of Personnel Benefit Costs on firm turnover. The paper therefore concludes that investments in human resources have positive trade-off effects on profitability and growth of firms and recommends greater commitment to manpower development and training, while providing proper infrastructures and conducive working environment to enhance the capacity of employees to drive positive improvements in corporate financial performance.