The purpose of this paper is to report on the results of a study carried out to establish the contribution of board of directors’ effectiveness, intellectual capital (IC) and managerial attitude to the adoption of International Financial Reporting Standards (IFRSs) in microfinance institutions (MFIs).,This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 67 MFIs that are members of the Association of Microfinance Institutions of Uganda. The data were analyzed using statistical package for social sciences.,Both board of director’s effectiveness and IC positively and significantly contribute to the adoption of IFRSs. Managerial attitude is positively and significantly associated with the adoption of IFRSs, but its explanatory power is subsumed in IC.,To the authors’ knowledge, this is the first study to investigate the contribution of board of director’s effectiveness, IC and managerial attitude to the adoption of IFRSs in MFIs using evidence from a developing African country like Uganda.

Determinants of adoption of International Financial Reporting Standards in Ugandan micro finance institutions

The objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country,The sample consisted of 259 industrial SMEs from the Cordoba, Argentina The data were analyzed by partial least squares–structural equation modeling (PLS–SEM),The study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products Structural capital is the component that has the greatest effect on innovation It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs,The research exposes limitations that uncover a path for future First, the work uses as the only source of information, the consultation at the highest level of the company Second, the study covered only industrial companies Future studies should focus on other sectors and countries,The results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization,The value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area

The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

The purpose of this paper is to examine the interactive effects of professionalism in the relationship between intellectual capital (IC) and performance of small and medium audit practices (SMPs) within the context of a developing economy, Uganda.,Data were collected through a questionnaire survey of 77 SMPs registered with the Institute of Certified Public Accountants of Uganda through their managing partners. The authors utilized multiple regression analysis to test hypotheses using centered variables and an interaction term between IC and professionalism.,IC is a significant determinant of performance of SMPs in Uganda; while professionalism when acting alone is not significant, however, results have shown that professionalism interacts with IC to enhance performance of SMPs.,This study, owing to the absence of publically available published financial statements of SMPs, utilizes a questionnaire to collect data on performance of SMPs which could be less objective. Further, as the study is limited to SMPs in Uganda, it is possible that the results are only applicable to Uganda’s accountancy field. In addition, the use of multiple regression is prone to problems associated with sampling error. However, the likelihood of these problems is mitigated by the interface with data and regression analysis diagnostics that were carried out.,This study provides initial empirical evidence on the relationship between IC, professionalism and performance of SMPs in developing economies. The study further indicates that while IC acts independently to influence firm performance, its interaction with professionalism enhances this performance.

Intellectual capital and performance of small and medium audit practices: The interactive effects of professionalism

The importance of intellectual capital disclosure for financial decisions : an exploration of some key elements


Purpose
This paper aims to comparatively examine the impact of the intellectual capital performance on the financial performance of Islamic and conventional banks in the Gulf Cooperation Council (GCC) countries by classifying intellectual capital as human capital, knowledge creation and innovation processes.


Design/methodology/approach
Along with the theoretical discussion in essentialising the rationale for intellectual capital formation through Islamic norms, the empirical analysis is formulated through the data generated by disclosure analysis using a panel of five GCC countries examining 408 annual reports from 19 Islamic and 23 conventional banks covering 2010–2019 period. In the analysis of the generated data, both fixed and random effects regression models are used.


Findings
The findings of this paper suggest that Islamic banks perform better than conventional banks in creating intellectual capital through knowledge creation, human capital and intellectual contribution. While the intellectual capital disclosure index and its pillars are significant for Islamic banks, these variables are not significant for the conventional banks in the GCC countries.


Research limitations/implications
Considering that disclosed information may not reflect actual experience and performance, factual data could also be used to overcome potential shortcomings of disclosure generated data.


Practical implications
This paper demonstrates that Islamic banks in the GCC have been successful in their intellectual capital performance, whereby they seem to be performing in line with the Islamic ontology. In addition, the disclosure items used in this paper may guide the Islamic and conventional banks in the process of preparing their annual reports. Importantly, they may use these items as benchmarks in further developing their intellectual capital performance for better financial performance.


Originality/value
This paper essentialises knowledge development and innovation for Islamic banks through the Islamic cognitive system rather than as a requirement of the market mechanism. Secondly, a comparative analysis between Islamic and conventional banks is presented by acknowledging the peculiarities of Islamic banks in the methodology and disclosure index.


Intellectual capital disclosure and financial performance nexus in Islamic and conventional banks in the GCC countries

Intellectual capital becomes the integral part in the development of successful organization lately. Most of the organizations and banks in Islamic countries and Iran are started to shift in practicing intellectual capital since knowing the important of it. Intellectual capital is defined as intangible assets that include technology, customer information, brand name, reputation and corporate culture that are invaluable to a firm‟s competitive power. In a contemporary business environment, intellectual capital is considered as the most critical strategic asset for the success of the organization. Intellectual capital is a life blood of the high -tech and knowledge intensive organizations. Banking sector is considered as a knowledge intensive segment. Therefore, there is a great need to nourish the concept and applications of intellectual capital in banking sector. In Islamic countries, banking sector is mainly based on conventional banking sector and Islamic banking sector. The purpose of this research is to consolidate these findings and investigate three elements of intellectual capital including human capital, structural capital and customer capital and their internal relations in the Islamic banking industry.

Zahra Mousavi

Papers

The Impact of Intellectual Capital on The Performance of Islamic Banking