IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i8p3174-d345600.html
   My bibliography  Save this article

Intellectual Capital Disclosure: Some Evidence from Healthy and Distressed Banks in Italy

Author

Listed:
  • Giuliana Birindelli

    (Department Management and Business Administration, D’Annunzio University of Chieti-Pescara, 65127 Pescara, Italy)

  • Paola Ferretti

    (Department of Economia e Management, University of Pisa, 56124 Pisa, Italy)

  • Helen Chiappini

    (Department Management and Business Administration, D’Annunzio University of Chieti-Pescara, 65127 Pescara, Italy)

  • Andrea Cosentino

    (Department of Economia e Management, University of Pisa, 56124 Pisa, Italy)

Abstract

The article investigates the intellectual capital disclosure of Italian banks over the years 2016–2017, applying the specific lens of healthy and distressed banks. To this end, we used content analysis and encoding techniques. The main results point out that intellectual capital (IC) disclosure is generally poor and that the intensity of disclosure varies slightly between healthy and distressed banks. Regarding the quality of disclosure, healthy banks present a higher, albeit modest, tendency to disclose non-qualitative and forward-looking information, maybe due to the fact that they are more focused on the strategies and the relationships with stakeholders as opposed to a more short-term approach of the distressed banks. To complement our study on healthy and distressed banks, we repeated the analysis focusing on bank size and independent directors. In this case, results do not show relevant differences in terms of IC disclosure. Hence, our findings suggest the need to consider banks’ IC disclosure as a strategic asset for increasing, among others, transparency and reputation.

Suggested Citation

  • Giuliana Birindelli & Paola Ferretti & Helen Chiappini & Andrea Cosentino, 2020. "Intellectual Capital Disclosure: Some Evidence from Healthy and Distressed Banks in Italy," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3174-:d:345600
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/8/3174/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/8/3174/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Baruch Lev & Stefano Zambon, 2003. "Intangibles and intellectual capital: an introduction to a special issue," European Accounting Review, Taylor & Francis Journals, vol. 12(4), pages 597-603.
    2. Ignazio Visco, 2018. "Banks and finance after the crisis: Lessons and challenges," PSL Quarterly Review, Economia civile, vol. 71(286), pages 255-277.
    3. Anne-Laure Mention, 2011. "Exploring voluntary reporting of intellectual capital in the banking sector," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(3), pages 279-309, November.
    4. Si Jie Lim & Gregory White & Alina Lee & Yuni Yuningsih, 2017. "A longitudinal study of voluntary disclosure quality in the annual reports of innovative firms," Accounting Research Journal, Emerald Group Publishing Limited, vol. 30(01), pages 89-106, May.
    5. Vivien Beattie & Bill McInnes & Stella Fearnley, 2004. "A methodology for analysing and evaluating narratives in annual reports: a comprehensive descriptive profile and metrics for disclosure quality attributes," Accounting Forum, Taylor & Francis Journals, vol. 28(3), pages 205-236, September.
    6. Castilla Polo, Francisca & Gallardo Vázquez, Dolores, 2008. "Social information within the intellectual capital report," Journal of International Management, Elsevier, vol. 14(4), pages 353-363, December.
    7. Maria Teresa Nardo & Stefania Veltri, 2014. "On the plausibility of an integrated approach to disclose social and intangible issues," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 10(3), pages 416-435, July.
    8. 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.
    9. Ignazio Visco, 2018. "Banche e finanza dopo la crisi: lezioni e sfide," Moneta e Credito, Economia civile, vol. 71(282), pages 95-118.
    10. Niamh Brennan & Brenda Connell, 2000. "Intellectual capital : current issues and policy implications," Open Access publications 10197/2916, Research Repository, University College Dublin.
    11. Eirini Manolopoulou & Dimitris Tzelepis, 2014. "Intellectual capital disclosure: the Greek case," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 11(1), pages 33-51.
    12. Giuliana Birindelli & Paola Ferretti & Helen Chiappini, 2019. "Intellectual Capital Disclosure: Evidence from the Italian Systemically Important Banks," Palgrave Studies in Impact Finance, in: Mario La Torre & Helen Chiappini (ed.), Socially Responsible Investments, chapter 0, pages 37-59, Palgrave Macmillan.
    13. Striukova, Ludmila & Unerman, Jeffrey & Guthrie, James, 2008. "Corporate reporting of intellectual capital: Evidence from UK companies," The British Accounting Review, Elsevier, vol. 40(4), pages 297-313.
    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. Emilio Passetti & Andrea Tenucci & Lino Cinquini & Marco Frey, 2008. "Communicating Intellectual Capital: Evidence from Social and Sustainability Reporting," Working Papers 200805, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.
    2. Anne-Laure Mention, 2011. "Exploring voluntary reporting of intellectual capital in the banking sector," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(3), pages 279-309, November.
    3. Filippo Vitolla & Nicola Raimo & Michele Rubino, 2020. "Gli effetti della cultura nazionale sulla qualit? della disclosure del capitale intellettuale nel contesto dell?Integrated Reporting," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(1), pages 137-160.
    4. Campbell, David & Abdul Rahman, Mara Ridhuan, 2010. "A longitudinal examination of intellectual capital reporting in Marks & Spencer annual reports, 1978–2008," The British Accounting Review, Elsevier, vol. 42(1), pages 56-70.
    5. de Villiers, Charl & Sharma, Umesh, 2020. "A critical reflection on the future of financial, intellectual capital, sustainability and integrated reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 70(C).
    6. Valentina Beretta & Maria Chiara Demartini & Laura Lico & Sara Trucco, 2021. "A Tone Analysis of the Non-Financial Disclosure in the Automotive Industry," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    7. Passetti, Emilio & Tenucci, Andrea & Cinquini, Lino & Frey, Marco, 2009. "Intellectual capital communication: evidence from social and sustainability reporting," MPRA Paper 16589, University Library of Munich, Germany.
    8. Vitolla, Filippo & Raimo, Nicola & Rubino, Michele, 2019. "Intellectual Capital Disclosure and Firm Performance: An Empirical Analysis Through Integrated Reporting," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 245-255, Governance Research and Development Centre (CIRU), Zagreb.
    9. Guthrie, James & Ricceri, Federica & Dumay, John, 2012. "Reflections and projections: A decade of Intellectual Capital Accounting Research," The British Accounting Review, Elsevier, vol. 44(2), pages 68-82.
    10. 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.
    11. Beattie, Vivien, 2014. "Accounting narratives and the narrative turn in accounting research: Issues, theory, methodology, methods and a research framework," The British Accounting Review, Elsevier, vol. 46(2), pages 111-134.
    12. Bouten, Lies & Everaert, Patricia & Van Liedekerke, Luc & De Moor, Lieven & Christiaens, Johan, 2011. "Corporate social responsibility reporting: A comprehensive picture?," Accounting forum, Elsevier, vol. 35(3), pages 187-204.
    13. Hwan-Yann Su, 2014. "Business Ethics and the Development of Intellectual Capital," Journal of Business Ethics, Springer, vol. 119(1), pages 87-98, January.
    14. 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.
    15. Neifar, Souhir & Jarboui, Anis, 2018. "Corporate governance and operational risk voluntary disclosure: Evidence from Islamic banks," Research in International Business and Finance, Elsevier, vol. 46(C), pages 43-54.
    16. Elwira Gross-Gołacka & Marta Kusterka-Jefmańska & Bartłomiej Jefmański, 2020. "Can Elements of Intellectual Capital Improve Business Sustainability?—The Perspective of Managers of SMEs in Poland," Sustainability, MDPI, vol. 12(4), pages 1-23, February.
    17. Ntim, Collins G. & Lindop, Sarah & Thomas, Dennis A., 2013. "Corporate governance and risk reporting in South Africa: A study of corporate risk disclosures in the pre- and post-2007/2008 global financial crisis periods," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 363-383.
    18. Omaima Hassan & Claire Marston, 2010. "Disclosure measurement in the empirical accounting literature - a review article," Accountancy Discussion Papers 1004, Accountancy Research Group, Heriot Watt University.
    19. Beck, A. Cornelia & Campbell, David & Shrives, Philip J., 2010. "Content analysis in environmental reporting research: Enrichment and rehearsal of the method in a British–German context," The British Accounting Review, Elsevier, vol. 42(3), pages 207-222.
    20. Salvi, Antonio & Vitolla, Filippo & Giakoumelou, Anastasia & Raimo, Nicola & Rubino, Michele, 2020. "Intellectual capital disclosure in integrated reports: The effect on firm value," Technological Forecasting and Social Change, Elsevier, vol. 160(C).

    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:8:p:3174-:d:345600. 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.