Intellectual capital disclosure: high‐tech versus traditional sector companies

Abstract

Purpose – The purpose of this study is to compare the level of intellectual capital disclosure (ICD) of firms in the high technology and traditional sectors of the economy.Design/methodology/approach – In order to provide a framework to evaluate the level of disclosure of the different categories of intellectual capital (IC), the author develops an IC model based on an integration of the resource‐based view (RBV) of the firm, the knowledge management, and IC literature. The model is called the RBV IC model. Content analysis was conducted using the SEC Form 10‐K annual reports of 143 high‐technology companies (HTCs) and 141 traditional sector companies (TSCs) US publicly traded firms for fiscal year 2000 and 2004. The components of IC as delineated in the RBV IC model are the subject of the analysis with the frequency of disclosure being used as the measure of disclosure.Findings – HTCs had a higher frequency of disclosure of customer capital, organizational capital, human capital, and intellectual propert...