Intellectual Capital Reporting: Study of IT-Sector Corporations in India

Australian Journal of Business and Management Research (AJBMR) No. 1 Vol. 1, 2015

13 Pages Posted: 20 Oct 2015

Date Written: October 20, 2015

Abstract

Intellectual capital (IC) can prove to be a source of competitive advantage for businesses ultimately leading to wealth generation in the long-term. At present, reporting of IC information is done by very few leading corporations purely on a "voluntary" basis. Unfortunately, the omission of IC information may adversely influence the quality of decisions made by shareholders, or lead to material misstatements. India presents an ideal case for the analysis of IC reporting by the IT corporations because the economy has been undergoing rapid transformation. This study attempts to provide an insight into the style of IC reporting done by the top IT-sector corporations in India. In order to survey the recent IC reporting practices, we conducted a study of 16 IT corporations in which "content analysis" was performed on their 2007 to 2009 annual reports. The results of this study confirmed that IC reporting in these corporations is almost negligible, and IC reporting had not received any preference from the mentors of these corporations. A major recommendation for corporations is to develop strategic and tactical initiatives that provide for "voluntary" reporting of IC. These initiatives may initially be used for internal management purposes, but an external stakeholder-focus IC report should be the ultimate long-run goal.

Keywords: Intellectual capital, reporting, Information Technology corporations, India, IC reports

Suggested Citation

Bhasin, Madan Lal, Intellectual Capital Reporting: Study of IT-Sector Corporations in India (October 20, 2015). Australian Journal of Business and Management Research (AJBMR) No. 1 Vol. 1, 2015, Available at SSRN: https://ssrn.com/abstract=2676492

Madan Lal Bhasin (Contact Author)

Universiti Utara Malaysia ( email )

Sintok, Kedah Darul Aman 06010
Malaysia
01114567247 (Phone)

HOME PAGE: http://www.uum.edu.my

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