Underwriter reputation, intellectual capital disclosure. Impact of intellectual capital disclosure on market cap. Business dynamics of the 21st century are increasingly determined and driven by intellectual capital ic elements. To ensure that these innovations create value, a firm must establish a wellplanned and wellexecuted set of management initiatives. Ic disclosure that can be useful and provide relevant information to the users of the annual reports. We explore whether representation of women on boards increases the level of voluntary disclosure of intellectual capital ic information, including disclosures of knowledgebased intangibles. The future drivers of any economy will no longer be capital, land or equipment, but the people and. The impact of intellectual capital disclosure on cost of. The nature and extent of voluntary intellectual capital disclosures by. Ic is the key driver of the companys competitive advantage. Pdf on jan 1, 2002, pike and others published intellectual capital management and disclosure find, read and cite all the research you need on researchgate.
Company characteristics and voluntary disclosure of. This study investigates the association between corporate governance and intellectual capital ic disclosure, controlling for firm age and leverage, for a sample of 150 sri lankan listed firms. An empirical analysis serena santis 1, michela bianchi 2, alberto incollingo 1 and marco bisogno 3 1 department of political science jean monnet, university of campania luigi vanvitelli, viale ellittico, no. Intellectual capital disclosure and corporate governance.
The determinants of intellectual capital disclosure. Intellectual capital, disclosure, annual reports, it corporations, empirical study, ic reports. Although it is not presented adequately in the annual reports, voluntary disclosure of banks intellectual capital relatively represents. Disclosure and measurement of intellectual capital. The impact of intellectual capital disclosure on cost of equity capital. The project of intellectual capital disclosure semantic scholar. As a result, ic cannot be reported comprehensively in financial statements. Intellectual capital disclosure and market capitalization mohammad j. Women directors and disclosure of intellectual capital. Thus, external parties especially investors and creditors find difficulties in analyzing and measuring the quality and prospect of.
This briefing will follow the approach adopted by the meritum guidelines for managing and reporting on intangibles and will use intangibles and intellectual capital interchangeably. The release of banks intellectual capital is one of the important elements of banks annual reports. This unaccounted capital can be described as the knowledgebased equity that supports the knowledgebased assets of a firm. There is no commonly agreed definition of intangibles the. Measurement and disclosure of intellectual capital. Are a companies intellectual capital performance and. The idea that competitive advantage is gained through the application of intellectual capital. The influence of corporate governance on the intellectual. Perceptions of intellectual capital disclosure in egyptian. Role of corporate governance in the voluntary disclosure.
Business dynamics of the 21st century are increasingly determined and driven by intellectual capital ic elem ents. Pengertian intellectual capital, karakteristik, komponen, klasifikasi dan pengukuran intellectual capital lengkap intellectual capital atau modal intelektual adalah asset tidak berwujud yang berupa sumber daya informasi dan pengetahuan yang berfungsi untuk meningkatkan kemampuan bersaing serta meningkatkan kinerja perusahaan menurut international federation of accountan. This study examines voluntary intellectual capital disclosure icd provided by listed italian companies in annual reports from the year 2001. Botosan 1997 was the first to empirically explore the relationship between the cost of capital and aggregate disclosure. More broadly, several other theories might also explain why companies choose to report voluntarily. Intellectual capital disclosure and market capitalization. The level of intellectual capital disclosure prior research has proved that intellectual capital disclosure has gained importance in recent.
This paper attempts to estimate and analyse the nature and extent of overall intellectual capital disclosure icd and its subcomponents in the annual reports of information technology it industry in india for the fy 201718. A sample of 185 companies listed in bursa malaysia was selected consisting of five industries which are information technology, consumer product, industrial product, tradingservices. Pdf purpose the purpose of this paper is to examine the extent and quality of voluntary intellectual capital disclosures icd by professional. Intellectual capital disclosure intellectual capital is the dynamic set of knowledge, capabilities, networks, operation processes, individual and organizational relations that contribute to creating a. Intellectual capital turnover rate for 2016 30100% 4% 780. In todays knowledgebased economy, measurement, management and disclosure of intellectual capital ic are very crucial for enhancing business performance and economic growth, both in manufacturing as well as service organizations. Intellectual capital turnover rate for 2017 25 100% 3% 780. Innovation in voluntary disclosure of intellectual capital lead by european firms, such as celemi and skandia, has generated a plethora of new reporting frameworks such as the balanced scorecard. The results show that company size affects the disclosure of intellectual capital. Routledge companions in business, management and accounting. This study aims to describe the intellectual capital disclosure practices in the biggest indonesian universities and to empirically examine the. This study breaks with the prior literature on intellectual capital disclosure practices in two major ways.
The results appear to corroborate the view that an increase in institutional investor shareholding has a negative effect on voluntary disclosure, supporting the hypothesis of entrenchment, whereas an. Exploring voluntary external disclosure of intellectual capital in listed companies. The aim of this article is to analyse the internal mechanisms of corporate governance board of directors and ownership structure, which influence voluntary disclosure of intangibles. The future drivers of any modern economy will no longer be capital, land or equipment, but the people and their. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary. At present, intellectual capital disclosure icd is done voluntarily by very few leading corporations all. Costbenefit analysis of intellectual capital disclosure. Issue 1 2017 exploring corporate disclosure and reporting of intellectual capital. Intellectual capital, voluntary disclosure, company characteristics, sweden abstract. Interest in ic and ic disclosure is rising in developed and developing countries. However, there has been little support by the accounting profession to recognise the value of intellectual capital or adopt a common disclosure framework. Introduction intellectual capital ic is significant contributor in the value creation process of.
It also attempts to examine whether corporate governance characteristics of these firms influence their icd. Issue 3 2017 intellectual capital management as a driver of competitiveness and sustainability. This study attempts to provide an insight into the style of. Journal of intellectual capital emerald publishing. Abdolmohammadi bentley college, waltham, massachusetts, usa abstract purpose this paper aims to develop a descriptive framework of the components of intellectual capital in annual reports. Intellectual capital, jordan, intangible assets, industrial plcs, voluntary disclosure 1.
Intellectual capital disclosure intellectual capital disclosure is defined by abeyesekera and guthrie 2002 as a report intended to meet the information needs common to users who are unable to command the preparation of reports about intellectual capital tailored so as to satisfy,specifically all of their information needs gan et al. The influence of corporate governance mechanisms on human, structural and relational capital disclosure, based. We respond to a call to generate knowledge and insights that can compel positive change in the representation and status of women on corporate boards bilimoria, 2000, p. The independent variables comprise various forms of corporate governance attributes. Brand, intellectual capital, ic disclosure, market capitalization, reporting 1. Pengertian intellectual capital, karakteristik, komponen. Are a companies intellectual capital performance and intellectual. First, this study provides a longitudinal examination of. Disclosure, measurement, intellectual capital, intangible assets, developing country.
This study concentrates on five explanatory variables that can be considered as the determinants of intellectual capital disclosure. The modified intangible assets monitor is used to capture the reporting of elements. International journal of innovation, creativity and change. Using annual report of 122 american firms operating in the. The paper also aims to investigate the effects of disclosure of intellectual. Low and kalafut conclude that intellectual capital consists of three components. Intellectual capital is the primary creator of value in many business sectors and innovative firms now disrupt more sectors each year. Together they represent stores of value that are the basis of an organizations value creation. This unaccounted capital can be described as the knowledgebased equity that supports the knowledgebased. Intellectual capital disclosure and prospective student. The objectives of this paper are to determine the level of the intellectual capital ic disclosure among malaysian listed companies and to investigate the effect of ic information on market capitalization mcap. Results of the analysis based on the three measures of intellectual capital disclosure indicate significant association with all the governance factors except for role duality. Introduction in recent years, it has been commonly observed that a companys market value is well above its book value, thus. Company characteristics and voluntary disclosure of intellectual capital a study on swedish listed companies author.
Disclosure of intellectual capital in annual reports. Intellectual capital ic and intangible assets in general pose real challenges for. Introduction the intellectual capital ic held by a firm can be thought of as a form of unaccounted capital within the traditional accounting system. Keywords disclosure, capital markets, financial analysts, intellectual capital. The paper adds to the literature on intellectual capital disclosure in two crucial respects. We present a model that incorporates this overall argument in the form of a series of hypothesized relation ships between different dimensions of social capital and the main mechanisms and processes necessary for the creation of intellectual capital. Pdf is corporate governance and intellectual capital.
Does intellectual capital disclosure matter for audit risk. It is noted that the low turnover rate of the company is due to the existence of a good policy of motivation. Ic intellectual capital icaew institute of chartered accountants in england and wales icd intellectual capital disclosure icr intellectual capital reporting mcm market capitalisation methods for measuring intellectual capital nrmb new reporting models for businessreport published by the icaew 2003. Introduction during the 1990s there was a swift evolutionary shift in the established paradigm underlying the dominant model for business practices and accomplishment. Abstract many firms have started disclosing information on intellectual capital.
1372 328 1347 656 703 1617 1608 67 691 222 830 1600 1626 472 360 1082 485 144 1336 1244 1055 627 1258 833 392 820 346 914 400