Voluntary Disclosure of Intellectual Assets and Intellectual Liabilities: Impact on Financial Performance in Publicly Listed Firms in the United Arab Emirates pp325-338
Abstract: Financial reporting is an important, crucial task for achieving and sustaining a well‑organized, farsighted business. Furthermore, investor demand for relevant information and improved quality and timeliness of financial information is increasin g in the face of deteriorating usefulness of traditionally reported earnings, cash flows, and equity values. Thus, many accounting industry practitioners, analysts, and researchers now see Intellectual Capital (IC) as a driver for a firms long term bus iness competitiveness. However, most IC studies have overlooked the negative side of IC which is referred to as Intellectual Liabilities (IL). Therefore, the objective of the present research is to explore through empirical analysis how Intellectual Ass ets (IA) and IL components, as independent variables, influence Firm Financial Performance (FFP) as a dependent variable. The present study uses content analysis of 2010 and 2011 annual reports for all publicly listed companies in the United Arab Emir ates (UAE). Multivariate regression analysis is employed to answer the research question: What are the characteristics of a new conceptual model that assists in explaining the relationships between IC disclosure and FFP for companies listed on the UAE s tock exchanges? The findings indicate a statistically positive relationship between Human Assets (HA), Relational Assets (RA), Structural Assets (SA), Human Liabilities (HL), Relational Liabilities (RL), and Structural Liabilities (RL) on one hand, and Return on Equity (ROE) on the other hand. However, this research has some limitations which include the restrictions inherent in the content analysis method, in addition to the external validity to other jurisdictions due to the sample being c hosen from the UAE only. In terms of practical implications, the findings of this study provide an insight to firm managers on the impact of increased transparency and disclosure on FFP.
Keywords: Keywords: intellectual assets, intellectual liabilities, disclosure, financial performance, United Arab Emirates
Knowledge Sharing, Control Mechanisms and Intellectual Liabilities in knowledge‑intensive firms pp128-138
Abstract: Intellectual capital (IC) and knowledge sharing (KS) are key elements for fostering firm value, especially in knowledge‑intensive firms. Management Control Systems (MCSs) have been recognized as key knowledge integrators. Recently, this as sumption has been called into question as there may exist negative and destructive effects in both IC and KS fostered by a misuse of MCSs. Through a case study of 'Engineering Ltd.", this paper examines the 'dark side' issues associated by improperly impl ementing knowledge sharing and by imposing rules and constraints on behavior. The subject of our study, Engineering Ltd. , is a consultancy company with 10,000 employees. The case study is used to scrutinize the major risks of knowledge sharing and to i ntroduce possible solutions.
Keywords: Keywords knowledge sharing, control mechanisms, intellectual liabilities, knowledge-intensive firms