IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i17p7095-d406490.html
   My bibliography  Save this article

Intellectual Capital of a Trading Company: Comprehensive Analysis Based on Reporting

Author

Listed:
  • Oksana Pirogova

    (Graduate School of Service and Trade, Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, 29 Polytechnicheskaya St., 195251 St. Petersburg, Russia)

  • Olga Voronova

    (Graduate School of Service and Trade, Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, 29 Polytechnicheskaya St., 195251 St. Petersburg, Russia)

  • Tatyana Khnykina

    (Graduate School of Service and Trade, Institute of Industrial Management, Economics and Trade, Peter the Great St. Petersburg Polytechnic University, 29 Polytechnicheskaya St., 195251 St. Petersburg, Russia)

  • Vladimir Plotnikov

    (Department of General Economic Theory and History of Economic Thought, St. Petersburg State University of Economics, Sadovaya Str. 21, 191023 St. Petersburg, Russia)

Abstract

The study is devoted to the analysis of the efficiency of use and the effectiveness of disclosing the intellectual capital (IC) of a trading company operating in the market of the Russian Federation. The subject of the research is an assessment of the quality of disclosure of information about the IC company involved in the creation of financial results of activities and the growth of the company’s value. The study examines the assessment of IC and the search for links between the involvement of IC in the formation of the financial result of a trading company and the degree of its reflection in the company’s annual reports. Methods of using intellectual value-added coefficients (VAIC) such as the trademark logo (written as ™), Calculated Intangible Value (CIV) and content analysis of the company’s annual reports are used to assess the IC and its elements. The influence of IC and its components, on the financial results of a trading company are also investigated and calculated using various methods. It is shown that there are no statistically significant relationships between the assessments of IC and its elements obtained using financial ratios, and those obtained using content analysis. This indicates that the opinions and assessments of the heads of a trading company regarding IC are formed regardless of the size of IC involved in the formation of economic results and testifies to the absence of an effective investment management policy in the studied company. Some of the results obtained confirm the trends in IC structures previously observed for companies in other industries. The results also indicate that the existing system for preparing annual reports does not sufficiently consider the size, dynamics and efficiency of using the intangible assets of a trading company. The results of this study are likely to be useful to management and academics.

Suggested Citation

  • Oksana Pirogova & Olga Voronova & Tatyana Khnykina & Vladimir Plotnikov, 2020. "Intellectual Capital of a Trading Company: Comprehensive Analysis Based on Reporting," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7095-:d:406490
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/17/7095/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/17/7095/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ester Oliveras & Yulia Kasperskaya, 2004. "Reporting intellectual capital in Spain," Economics Working Papers 781, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Jian Xu & Binghan Wang, 2018. "Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-15, December.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844.
    5. Volkov, Dmitry L. & Garanina, Tatiana A., 2007. "Intellectial capital valuation: Case of Russian companies," Working Papers 857, Graduate School of Management, St. Petersburg State University.
    6. Giacomo Boesso & Kamalesh Kumar, 2007. "Drivers of corporate voluntary disclosure," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 20(2), pages 269-296, April.
    7. Volkov, Dmitry L. & Garanina, Tatiana A., 2007. "Intellectial capital valuation: Case of Russian companies," Working Papers 47, Graduate School of Management, St. Petersburg State University.
    8. Andrew Atkeson & Patrick J. Kehoe, 2002. "Measuring Organization Capital," NBER Working Papers 8722, National Bureau of Economic Research, Inc.
    9. Xin Long Xu & Hsing Hung Chen & Rong Rong Zhang, 2020. "The Impact of Intellectual Capital Efficiency on Corporate Sustainable Growth-Evidence from Smart Agriculture in China," Agriculture, MDPI, vol. 10(6), pages 1-15, June.
    10. Vivien Beattie & Sarah Jane Thomson, 2007. "Lifting the lid on the use of content analysis to investigate intellectual capital disclosures," Accounting Forum, Taylor & Francis Journals, vol. 31(2), pages 129-163, June.
    11. Hongxing Yao & Muhammad Haris & Gulzara Tariq & Hafiz Mustansar Javaid & Muhammad Aamir Shafique Khan, 2019. "Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    12. Serena Santis & Michela Bianchi & Alberto Incollingo & Marco Bisogno, 2018. "Disclosure of Intellectual Capital Components in Integrated Reporting: An Empirical Analysis," Sustainability, MDPI, vol. 11(1), pages 1-15, December.
    13. Shahid Amin & Shoaib Aslam, 2017. "Intellectual Capital, Innovation and Firm Performance of Pharmaceuticals: A Study of the London Stock Exchange," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 16(02), pages 1-20, June.
    14. Baruch Lev & Suresh Radhakrishnan, 2003. "The Measurement of Firm-Specific Organization Capital," NBER Working Papers 9581, National Bureau of Economic Research, Inc.
    15. Boujelbene, Mohamed, 2013. "The impact of intellectual capital disclosure on cost of equity capital: A case of French firms," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 18(34), pages 45-53.
    16. Gaganan Awano & Mark Franklin & Jonathan Haskel & Zafeira Kastrinaki, 2010. "Measuring investment in intangible assets in the UK: results from a new survey," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 4(7), pages 66-71, July.
    17. Muhammad Haris & HongXing Yao & Gulzara Tariq & Ali Malik & Hafiz Mustansar Javaid, 2019. "Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan," JRFM, MDPI, vol. 12(2), pages 1-26, April.
    18. Jing Li & Richard Pike & Roszaini Haniffa, 2008. "Intellectual capital disclosure and corporate governance structure in UK firms," Accounting and Business Research, Taylor & Francis Journals, vol. 38(2), pages 137-159.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stropnik Neca & Korošec Bojana & Tominc Polona, 2017. "The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations," Naše gospodarstvo/Our economy, Sciendo, vol. 63(4), pages 3-16, December.
    2. Guangchun Jin & Jian Xu, 2022. "Does Intellectual Capital Affect Financial Leverage of Chinese Agricultural Companies? Exploring the Role of Firm Profitability," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    3. Jian Xu & Muhammad Haris & Hongxing Yao, 2019. "Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan," Sustainability, MDPI, vol. 11(23), pages 1-23, November.
    4. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    5. Md. Sohel Rana & Syed Zabid Hossain, 2023. "Intellectual Capital, Firm Performance, and Sustainable Growth: A Study on DSE-Listed Nonfinancial Companies in Bangladesh," Sustainability, MDPI, vol. 15(9), pages 1-23, April.
    6. Muhammad Akhtar & Kong Yusheng & Muhammad Haris & Qurat Ul Ain & Hafiz Mustansar Javaid, 2022. "Impact of financial leverage on sustainable growth, market performance, and profitability," Economic Change and Restructuring, Springer, vol. 55(2), pages 737-774, May.
    7. Mostafa A. Ali & Nazimah Hussin & Hossam Haddad & Dina Alkhodary & Ahmad Marei, 2021. "Dynamic Capabilities and Their Impact on Intellectual Capital and Innovation Performance," Sustainability, MDPI, vol. 13(18), pages 1-32, September.
    8. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    9. Malen, Joel, 2015. "Motivating And Enabling Firm Innovation Effort: Integrating Penrosian And Behavioral Theory Perspectives On Slack Resources," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 49(1), pages 37-54, October.
    10. Trippel, Arthur, 2015. "Born Globals: Darstellung und kritische Würdigung," Ilmenauer Schriften zur Betriebswirtschaftslehre, Technische Universität Ilmenau, Institut für Betriebswirtschaftslehre, volume 1, number 12015.
    11. Ratapol Wudhikarn & Nopasit Chakpitak & Gilles Neubert, 2020. "Improving the Strategic Benchmarking of Intellectual Capital Management in Logistics Service Providers," Post-Print hal-03188190, HAL.
    12. Judith Cavazos-Arroyo & Rogelio Puente-Diaz, 2019. "The Influence of Marketing Capability in Mexican Social Enterprises," Sustainability, MDPI, vol. 11(17), pages 1-15, August.
    13. Muhammad Madyan & Iksan Abdi Nugraha & Wisudanto Wisudanto & Rahmat Setiawan & Novian Abdi Firdausi, 2022. "Building firm value and financial performance through intellectual capital: the Indonesia stock exchange's experience," Economics Bulletin, AccessEcon, vol. 42(2), pages 294-302.
    14. Hannu Piekkola, 2016. "Intangible Investment and Market Valuation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(1), pages 28-51, March.
    15. Vivien Beattie & Robin Roslender & Sarah Jane Smith, 2013. "Balancing on a Tightrope: Customer Relational Capital, Value Creation and Disclosure," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2013(3-4), pages 19-52.
    16. G. Scott Erickson, 2013. "Role of governance in national innovation systems: from intellectual property to intellectual capital," Chapters, in: Mehmet Ugur (ed.), Governance, Regulation and Innovation, chapter 10, pages 239-261, Edward Elgar Publishing.
    17. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    18. Margit Osterloh & Bruno Frey, 2006. "Shareholders Should Welcome Knowledge Workers as Directors," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(3), pages 325-345, September.
    19. An, Yi & Davey, Howard & Eggleton, Ian R.C. & Wang, Zhuquan, 2015. "Intellectual capital disclosure and the information gap: Evidence from China," Advances in accounting, Elsevier, vol. 31(2), pages 179-187.
    20. Margit Osterloh & Bruno S. Frey, "undated". "Shareholders Should Welcome Employees as Directors," CREMA Working Paper Series 2005-02, Center for Research in Economics, Management and the Arts (CREMA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:12:y:2020:i:17:p:7095-:d:406490. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.