Nevertheless, transparent to the all stakeholders.The emergence of the

Nevertheless, HC information has traditionally only been reported internally byorganizations. This is because there have been no disclosure related standards by whichsuch information might be reported in their annual reports. In today’s knowledge basedeconomy, researchers endeavor to identifymeans of viewing corporate performancemorecomprehensively, including establishing a common framework for describing andrepresenting intangibles in a reliable manner (Brooking, 1996; Low et al., 1999; Stewart,1994; Petrash, 1996). Abeysekera and Guthrie (2004) argue that the need for firms to beable to effectively manage, measure, and report on intangible assets has been reinforcedwith the development of a number of measurement instruments. Prior research studies(Buckowitz and Petrash, 1997; Flamholtz and Main, 1999; Stittle, 2004; Creelman, 2006)evidence that different firms such as the Skandia Group, the Canadian Imperial Bank ofCommerce, Hughes Space and Communications, Dow Chemicals, Buckman LaboratoriesInternational, and Telia have incorporated the measurement of HC (among otherintellectual capital (IC)measurements) into their both types of internal and external reportsand strategic management issues in the past decades.Although numerous studies have explored the HC reporting practices of firms inboth developed and developing countries (Olsson, 2001; Subbarao and Zeghal, 1997;Abeysekera and Guthrie, 2004; Ax and Marton, 2008; Huang et al., 2008, for a review),evidence on HC reporting in Bangladesh has been scarce. The case of Bangladesh asconsidered in the current research thus offers a valuable opportunity to address thissituation. There are various motivational rationales for why the country Bangladeshand its firms are considered perfect as a research site. First, recent trends in accountingresearch illustrates that the profession has identified the inevitability of HC forstrategic positioning by means of imparting information to improve the company’scompetitive advantage (Turner, 1996; Roslender, 1997; Roslender and Dyson, 1992;Bassi et al., 2000). Decision makers in Bangladeshi firms now focus on reshapingorganizational control systems, put new thought into both customer and employeesatisfaction in the pursuit of competitive advantages (Ali et al., 2008; Basir et al., 2001).They could thus initiate reporting more information on these valuable resources.Similarly, Basir et al. (2001) pointed out that the measuring and reporting of HCinformation in firms would be an excellent medium to make decision makers moreresponsible and transparent to the all stakeholders.The emergence of the better informed consumer compels firms to respond to marketpressures beyond the actual product being produced (e.g. working conditions,environmental protection, and production methods), which has led to pressure fordisclosure on human resource in some cases. Moreover, Mazumder (2005) observes thatBangladeshi companies have begun to voluntary report information such as on social andenvironmental issues and other supplementary financial reporting and statements in therecent times. In addition, Chowdhury (2000) explains that future financial reporting inBangladesh is on the verge of being strongly controlled by the Securities and ExchangeCommission’s (SEC) guidelines with a guideline note1, which might mandate publiccompanies to fully report all the essential information to the shareholders. At the sametime, the shifts of tasks between the private and the public spheres has made firms moreand more dedicated to embrace their social responsibilities. Further, the decentralise


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