Proceedings

sheet with several variables. Another researcher independently confirmed the coding
for each element and filled in a spreadsheet on the basis of the information reported
on the coding sheets. This gives a high degree of confidence in the overall result.
Table 3 shows the frequencies found in the content analysis of the annual reports of
the 18 listed companies in the sample. The results are presented in nominal terms and
also proportional terms with regards to our particular sample size. In parallel, the
results reported by Guthrie et al. (1999) are shown for comparative purposes.
Table 3. The frequencies of disclosures concerning intellectual capital elements, side
by side with the results of Guthrie et al. (1999)
COMPANY
CURRENT STUDY GUTHRIE ET AL.
(1999)
Sample: 18 100% Sample: 20 100%
Internal Capital (organization capital)
Patents 8 44% 3 15%
Copyrights 5 28% 1 5%
Trademarks 6 33% 2 10%
Management philosophy 14 78% 12 60%
Corporate culture 8 44% 6 30%
Management processes 14 78% 15 75%
Information systems 13 72% 10 50%
Networking systems 9 50% 3 15%
Financial relations
External Capital (customer/relational capital)
8 44% 1 5%
Brands 6 33% 9 45%
Customers 18 100% 16 80%
Customer loyalty 12 77% 7 35%
Company names 3 17% 5 20%
Distribution channels 4 22% 10 50%
Business collaborations 15 83% 13 65%
Licensing agreements 6 33% 8 40%
Favorable contracts 5 28% 1 5%
Franchising agreements
Employee competence (Human Capital)
0 0% 1 5%
Know-how 6 33% 6 30%
Education 6 33% 6 30%
Vocational qualification 3 17% 1 5%
Work-related knowledge 14 78% 12 60%
Work-related competencies 15 83% 9 45%
Entrepreneurial spirit 4 22% 19 95%
Frequencies found compare poorly with those of Guthrie et al. (1999). This result was
to be expected, given that the current sample is significantly different from that
employed by the latter researchers. The firms included in the STOXX® Europe TMI
Software & Computer Services index are significantly larger than those listed on the
Australian Stock Exchange, as indicated by Guthrie et al. (1999). Larger firms are
more likely to disclose more information (Guthrie and Mathews, 1985) and to possess
more intellectual capital because they are more visible and have more resources at
their disposal to sponsor new initiatives (Abeysekera & Guthrie, 2005). Secondly, the
sample of Guthrie et al. included companies from six industries, whereas the present
study is focused on only one intangibles-oriented industry. The companies belonging
to the Software & Computer Services Sector are more likely to design, develop, sell
or exploit resources of an intellectual nature, thus being able to disclose more
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