Abstract
Purpose – The purpose of this paper is to identify the corporate governance characteristics of Spanish companies included in the Ibex35 stock price index that influence the voluntary information disclosure policy regarding their Intellectual Capital. Design/methodology/approach – The methodology used was content analysis of 115 annual reports from 23 Ibex35 companies over five years; this allowed for the development of an index to quantify Intellectual Capital information. Findings – Based on Agency-Stakeholders Theory postulates, the main results reveal that companies that disclose most information about their Intellectual Capital are those in which managers have greater managerial ownership, fewer independent directors, separation of functions between the chairman and the chief executive, and larger Boards of Directors. Originality/value – With this study, we contribute to agency-stakeholder theory by analyzing a non-Anglo-Saxon market (characterized by strong executive power and low protection of minority shareholders and other stakeholders), stating that certain characteristics of Corporate Governance condition the disclosure of Intellectual Capital.
Highlights
Knowledge can be identified as a business asset (Sveiby, 1997; Tejedo-Romero & Araujo, 2016) that has become a key economic resource and the main competitive advantage (Brooking, 1997; Rodrigues, Tejedo-Romero & Craig, 2017)
In a context characterized by reduced legal protection to minority shareholders, a less developed capital market than the Anglo-Saxon, a monistic system of government determined by the relevance of the BD, and the predominance of satisfying the interests of all stakeholders, CG is a determining factor for improving accountability and transparency in Spanish companies
There has been a substitution effect due to the strong power of executive directors through the duality in the position of chairman and chief executive officer (CEO) (74.8% of the sample) that leads them to participate little in the information disclosure policy and cannot protect the interests of all stakeholders
Summary
Knowledge can be identified as a business asset (Sveiby, 1997; Tejedo-Romero & Araujo, 2016) that has become a key economic resource and the main competitive advantage (Brooking, 1997; Rodrigues, Tejedo-Romero & Craig, 2017). The purpose of IC disclosure should be to: a) provide relevant and quality information so that stakeholders can make efficient decisions (Abeysekera & Guthrie, 2005; Tejedo-Romero, & Alfaro-Cortés, 2014); b) reduce the asymmetries of information and improve relationships with stakeholders (Guthrie & Petty, 2000; Rodrigues et al, 2017); c) improve transparency between companies’ managers and owners and other stakeholders (Vergauwen, et al, 2007; Yi & Davey, 2010); d) reduce the gap between the book value and the market value of the company (GarcíaMeca, Parra, Larrán & Martínez, 2005); and e) create trust and reputation among stakeholders (Tejedo-Romero, 2016, Vergauwen, et al, 2007)
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