Colouring the numbers – on the role of intellectual capital in financial reporting
2013 (English)In: Journal of Intellectual Capital, ISSN 1469-1930, E-ISSN 1758-7468, Vol. 14, no 3, 376-394 p.Article in journal (Refereed) Published
Purpose – The aim of this paper is to explore how managers are mobilising IC items when approaching their investors and analysts. To this date, there is a lack of knowledge surrounding the translation processes of IC, from corporate disclosures to the capital market. Little is known of how managers mobilise their IC in order for analysts and investors to embrace it and consider it to be a relevant part of corporate disclosures.
Design/methodology/approach – The study applies a performative approach to IC, in which framing theory is mobilized to understand the duality of financial indicators. The empirical material was collected through a case study approach, focusing on the interim reporting practices of a Swedish online gaming company. The study investigated a total of 16 earnings announcements and their accompanying conference calls in the period of 2008-2011. In addition, five interviews with top managers and financial analysts were performed.
Findings – The findings suggest that IC is highly dependent on financial indicators and can therefore not be treated as the opposite of financial capital. Instead of complementing financial capital, IC is the symptomatic quality of financial indicators, i.e. a way to make sense, contextualise and reconnect a disentangled representation with empirical phenomena.
Originality/value – This paper introduces a new way of viewing IC disclosures, expanding the knowledge and methodology in IC research. The paper also highlights the study of an important disclosure, expanding research on IC disclosures beyond annual reports. Finally, it offers practitioners additional insights in the communication of non-financials to the capital market.
Place, publisher, year, edition, pages
2013. Vol. 14, no 3, 376-394 p.
Intellectual capital, Disclosure, Performativity, Framing, Earnings announcement, Conference call, Information disclosure, Earnings
Research subject Business Administration
IdentifiersURN: urn:nbn:se:su:diva-94828DOI: 10.1108/JIC-03-2013-0037OAI: oai:DiVA.org:su-94828DiVA: diva2:656389