Comparative Analysis of Intellectual Capital (IC) Disclosure: An Institutional Logics Perspective

Abstract

Purpose – This study intends to do a comparative analysis of intellectual capital disclosure among all the listed traditional conventional banks, conventional banks with Islamic windows, and sharia-based Islamic banks of Bangladesh. This study explains how various internal factors, external factors, and institutional logics lead to the differences in intellectual capital disclosure among these three streams of banks currently existing in Bangladesh.

Design/methodology/approach – Content analysis is carried out for the period of 2014-2018. The annual reports of 30 listed banks of the Dhaka Stock Exchange (DSE) are analyzed. The research framework includes 28 variables. Both the proportionate frequency and sentences are counted to understand the depth, nature, and volume of the disclosure.

Findings –It is found that conventional banks disclosed more intellectual capital information in the annual reports compared to the other two streams of banks for the last five years. Based on the category-wise comparison, it is found that Islamic banks and conventional banks with Islamic windows disclosed more information on internal capital, and conventional banks disclosed more information on external and human capital. It is also found that among all the conventional banks, a third-generation bank disclosed more intellectual capital information while among all the Islamic banks and conventional banks with Islamic windows the first-generation banks disclosed more intellectual capital information.

Originality/value – In the context of the banking sector of Bangladesh, a comparative analysis of intellectual capital disclosure has not been undertaken before. This study adds value to the existing IC literature by doing a rigorous comparative analysis and providing reasons from the institutional logics perspective.