Level Of Intellectual Capital Disclosure Research Articles

Voluntary Intellectual Capital Disclosure and Information Asymmetry: Study of Indian Firms

This article develops a disclosure index to examine the extent and quality of intellectual capital disclosure in Indian firms. Furthermore, it assesses the gap between stakeholder expectations and industry disclosure procedures by conducting five years database analysis. To analyze the extent and quality of intellectual capital disclosure, a content analysis technique was applied to a sample of 30 non-financial firms listed on the Bombay Stock Exchange for five years, 2018–2022. A disclosure index of 42 items was constructed based on previous studies under three intellectual capital categories: Structural Capital, Relational Capital, and Human Capital. It was found that Indian companies had a low level of intellectual capital disclosure, although it increased by 28% from 2018 to 2022. Also, there was an upward movement in the disclosure of all intellectual capital components. Structural capital is disclosed by the number of organizations, whereas human capital is being disclosed the lowest. This study developed a new disclosure index consisting of 42 intellectual capital items based on extant research conferred by experts. In addition, the study considered a Sensex non-financial company for the analysis. Third, this study uses graphs to represent disclosure quality.

Intellectual Capital Disclosure and the Effecting Factor on Official Website of Higher Education in Indonesia

This study aims to describe the level of intellectual capital disclosure and examine the effect of age, size, and internationality on the intellectual capital disclosure (ICD) of higher education in Indonesia. This study also sees the difference in intellectual capital disclosure between public and private higher education. This study uses 88 official websites of higher education in Indonesia. The ICD component used in this study is a framework comprising 60-item—testing tools for multiple linear regression analysis with a significance level of 0.05. The results obtained are: (1) size has a significant effect on intellectual capital disclosure; (2) age and internationality haven’t a significant effect on intellectual capital disclosure; and (3) intellectual capital disclosure of public higher education and private higher education has a different pattern. Public higher education is more likely to disclose information about human, structural, and relational capital in a narrative format. Meanwhile, private higher education is more likely to disclose structural and relational capital information in a narrative format but does not reveal information about human capital. This study contributes to the reference related to the pattern of intellectual capital disclosure among higher education (public and private higher education) and its affecting factors.

Board Characteristics and Intellectual Capital Disclosures: Evidence from Sri Lanka

Purpose: The purpose of this study is two-fold. First, to examine the state of intellectual capital disclosures. Second, to investigate the relationship between board characteristics and intellectual capital disclosures. Design: This study selected thirty non-financial listed companies with the highest market capitalization from the Colombo Stock Exchange in Sri Lanka. An intellectual capital disclosure index comprising 61 items was developed to understand the level of intellectual capital disclosure in the selected companies. Panel data analysis techniques were applied to test the proposed hypotheses. Findings: Results indicated that role duality and proportion of female directors have a significant and positive impact on intellectual capital disclosures. Firm leverage was found to have a significant and negative effect on intellectual capital disclosures. Insufficient empirical evidence between other corporate board characteristics and intellectual capital disclosure in Sri Lanka may be attributed to a non-mandatory corporate disclosure environment. Originality: This is among the few studies to examine the link between corporate governance and intellectual capital disclosures employing panel data in Sri Lanka. However, a discourse on the role of corporate governance and corporate disclosures is warranted in a small island developing economy with a fragile financial system like Sri Lanka. Future Research Directions – The study calls for more studies to investigate the relationship between corporate governance and intellectual capital disclosures in the case of Sri Lanka by employing data from different industries for longer periods.

Broadening the horizons of intellectual capital disclosure to the sports industry: evidence from top UEFA clubs

PurposeThe football industry presents a unique setting for intellectual capital analysis. This study aims to investigate the online intellectual capital disclosure level of top football clubs and to analyse the impact of some explanatory factors on the level of information provided.Design/methodology/approachThe authors use manual content analysis of the websites to measure intellectual capital disclosure levels along with a regression analysis on a sample of the 80 football clubs that qualified for the group stages of the 2019–20 UEFA Champions and Europa League.FindingsEmpirical results reveal that football clubs disclose a limited amount of information regarding intangibles on their websites. In addition, they show that sports performance, technical market value and social media visibility have a positive effect on the disclosure level.Originality/valueThis study extends the horizon of intellectual capital disclosure to a sector (football) that is currently under-explored and broadens the list of antecedents of the intellectual capital disclosure level.

The Extent of Intellectual Capital Disclosure and Corporate Governance Mechanism to Increase Market Value

The aim of this paper is to investigate the level of intellectual capital disclosure (ICD) in commercial banks listed on the Indonesian Stock Exchange. This paper also observed the effects of ICD and corporate governance mechanism on market value. This study uses content analysis techniques to measure ICD. The paper provides a novel approach to measure the ICD quality in developing countries using a four-numerical coding system. Secondary data were obtained from the financial statements and annual reports of the banks for the period 2011-2014. The data from 31 banks were analyzed using ordinary least square regression. The study reports that the quality of intellectual capital disclosure in Indonesian commercial banks increase steadily. Narrative disclosure dominates the report of intellectual capital in Indonesian banks. The results indicate that the size of audit committee, frequency of audit committee meeting, and intellectual capital disclosure affect positively the market value. Overall, the results indicate intellectual capital disclosure is associated with the market capitalization; these findings indicate that the ICD is a consideration in a stock investment decision. While regulations in Indonesia regarding intellectual capital reporting are not conclusive yet, the information needs of stakeholders have encouraged companies to expand voluntary disclosure.

Faktor–Faktor yang Mempengaruhi Tingkat Pengungkapan Modal Intelektual dan Dampaknya terhadap Nilai Perusahaan pada Perusahaan yang Melakukan IPO di BEI 2016 – 2018

Penelitian ini bertujuan untuk mengetahui pengaruh dualitas CEO, ukuran komisaris independen, kepemilikan manajerial sebelum IPO, profitabilitas, dan leverage terhadap tingkat pengungkapan modal intelektual serta dampaknya terhadap nilai perusahaan. Sampel penelitian ini adalah 64 perusahaan yang melakukan IPO di Bursa Efek Indonesia selama periode 2016 – 2018. Teknik pengambilan sampel yang digunakan adalah teknik non-probability sampling dengan menggunakan metode jugdement sampling. Pengujian data dilakukan dengan menggunakan SPSS 20.0. Teknik analisis data yang digunakan meliputi analisis statistik deskriptif, uji asumsi klasik, analisis regresi linear berganda untuk model 1 dan analisis regresi sederhana untuk model 2. Hasil penelitian pada model 1 menunjukkan bahwa dualitas CEO, ukuran komisaris independen, dan kepemilikan manajerial sebelum IPO tidak terbukti berpengaruh terhadap tingkat pengungkapan modal intelektual, sementara profitabilitas dan leverage terbukti berpengaruh positif terhadap tingkat pengungkapan modal intelektual. Sedangkan untuk model 2, hasil menunjukkan tingkat pengungkapan modal intelektual terbukti berpengaruh positif terhadap nilai perusahaan.

Does intellectual capital disclosure affect the cost of equity capital? An empirical analysis in the integrated reporting context

PurposeThe purpose of this study is to examine the impact of intellectual capital disclosure on the cost of equity capital in the context of integrated reporting, which represents the ultimate frontier in the field of corporate disclosure.Design/methodology/approachThe authors employ content analysis to measure intellectual capital disclosure levels along with a panel analysis on a sample of 164 integrated reports.FindingsEmpirical outcomes indicate that intellectual capital disclosure levels have a significantly negative association with the cost of equity capital.Originality/valueThis study's major contribution lies in its originality in terms of empirical examination of the relationship between intellectual capital disclosure in integrated reports and the cost of equity capital.

HUBUNGAN ANTARA PELAKSANAAN KERJA KOMITE AUDIT DENGAN TINGKAT PENGUNGKAPAN MODAL INTELEKTUAL

The purpose of this research was to describe duties and responsibilities of audit committee, intellectual capital (IC) disclosure level, and the relationship between duties and responsibilities of audit committee and IC disclosure level. This research used 8 samples of pharmaceutical companies listed in Indonesia Stock Exchange period 2010. Samples was collected by used saturated sample method. The measurement of independent and dependent variable were used content analysis method and the hypothesis tested by used rank spearman’s correlation (). This research indicated that 50% of 8 pharmaceutical companies, its audit committee had done more or less than 7 duties and responsibilities of audit committee indicators. 2 of 8 pharmaceutical companies, its audit committee had done 7 duties and responsibilities of audit committee indicators and audit committee for another 2 companies had done 8 duties and responsibilities of audit committee indicators. On dependent variable, the result of descriptive analysis show that 50% of 8 pharmaceutical companies disclosed IC more or less than 11.5 indicators of IC and 2 of 8 pharmaceutical companies disclosed 13 indicators of IC. The result of hypothesis testing indicated that there was a positive and significant relation between duties and responsibilities of audit committee and IC disclosure level on 10%’s alpha.

Determinan Faktor Pengungkapan Modal Intelektual dan Tingkat Pengungkapan Per Industrinya pada Seluruh Perusahaan yang Terdaftar di Bursa Efek Indonesia

This study aims to examine the influence of corporate governance mechanisms and company characteristics towards the extent of intellectual capital disclosure. The independent variable in this research is proportion of independence board, size of audit committee, profitability, age of company, size of company, and type of industries. The dependent variable in this research is intellectual capital disclosure level. The sample used in this research was annual reports all of company listed at Indonesia Stock Exchange. The sampling technique used in this study is purposive sampling. With this method, the samples were 146 firms. The analysis of this study uses multiple linear regression. The results of this study indicated that size of audit committee, profitability, size of company, and type of industries had positive and significant influence on extent of intellectual capital disclosure. Eventhough, proportion of independence board and age of company had no significant.

Ownership Structure and Intellectual Capital: Evidence from the GCC Countries

Intellectual capital (IC) has become a vital indicator of firms' ability to manage their assets to create long-term competitive advantage by increasing the percentage of knowledge-based investments. Developing countries such as the Gulf cooperation council (GCC) are currently emphasising their diversification efforts on transforming their countries into knowledge economies. This research considers ownership structure as part of the governance mechanisms within a firm that would contribute in explaining variations in the level of IC disclosure in the GCC. Accordingly, this paper set out to investigate the relationship between ownership structure and intellectual capital in GCC listed firms by developing a regression model using IC index as a dependent variable, ownership structure as an independent variable, and several control variables such as corporate governance, company age, size and financial leverage. It concluded that there is a significant and negative relationship between ownership structure (director's ownership, managerial ownership, institutional ownership, government ownership and foreign ownership) and ICL.

Corporate governance and intellectual capital disclosure: evidence from the Scandinavian countries

In the modern society intellectual capital (IC) disclosure offers valuable insights on the information transparency between the organisation and its stakeholders. The purpose of the present study is to analyse the determinants of IC disclosure based on the firm data collected from the Scandinavian countries. We have chosen to analyse 123 annual reports in the local language for the period of 2008 to 2012. The annual reports act as one of the best sources of data revealing important information about firms that are beyond the reporting requirements of the accounting regulations. This paper combines the empirical research of IC disclosure with the previous literature to identify its strategic implications on corporate governance. The aim is to examine the relationship between firm size, leverage ratio, information asymmetry and industry-specific factors on the level of IC disclosure. Our results call the potential need for more IC disclosure.

The Relationship Between the Intellectual Capital Disclosure and Cost of Debt Capital – A Case of Slovenian Private Audited Organisations

AbstractThe existing empirical research into the association between intellectual capital disclosures by organisations and the cost of debt is scarce or is based solely on the samples of the (large) listed organisations. Since agency issues between management/owners and lenders exist also in (large) private organisations whose financing is greatly dependent on loans and whose audited annual reports can be a source of additional information for external users, we performed an empirical research to find the answer to the question whether the level of intellectual capital disclosure (as a whole and of its sub-categories) of organisations is associated with the cost of their debt capital. Our study was performed on a sample of private Slovenian organisations with audited annual reports. The results of our research did not reveal that lenders would take into account intellectual capital disclosures by Slovenian private audited organisations as the information about the potential for their future cash flows when deciding on the cost of debt issued to these organisations.

Analisis Pengaruh Karakteristik Perusahaan Terhadap Intellectual Capital Disclosure Perusahaan Keuangan Di BEI

The purpose of this research is to test the impact level of intellectual capital disclosure on annual financial statements of listed financial companies in Indonesian Stock Exchange. This research has two variables. The first variable is the intellectual capital disclosure as the dependent variable. The second variable is the characteristics of the company (leverage, ownership concentration, type of
 external auditor, age of listing, independent commissioner, size of the audit committee, and size of the company) as the independent variable. The sample of this research are chosen by using the sampling purposive method. The classic assumption test is used earlier to validate the variables, and the result showed that the variables are valid. The result of this research shows that average rate of
 intellectual capital disclosure is 37,9%. Multiple regression analysis is used to test the hypothesis. Based on the statistics test result, the independent variable (leverage, ownership concentration, type of external auditor, age of listing, independent commissioner, size of the audit committee, and size of the company) doesn’t have significant effect on intellectual capital disclosure. It concludes that intellectual capital disclosure hasn’t been much revealed on financial companies in Indonesia.

The value relevance of intellectual capital disclosure: empirical evidence from Kuwait

PurposeDrawing on market efficiency theory and studies on intellectual capital (IC) disclosure, this study aims to examine if IC information provided in the corporate annual reports of Kuwait Stock Exchange (KSE) listed companies in 2013 is value-relevant.Design/methodology/approachThe analysis is divided into two parts. First, the level of intellectual capital disclosure (ICD) of KSE-listed companies is examined using the content analysis method. Second, the value relevance of financial reporting is examined empirically using Ohlson’s (1995) valuation model.FindingsThe results reveal that ICD is positively and significantly associated with market value, suggesting that greater ICD is valued by KSE market participants, who incorporate it into their valuation models.Practical implicationsGiven the importance of ICD in enhancing equity valuation, a practical implication of this study is to make managers aware of its positive and significant effect on equity valuation, which may encourage companies to increase their level of disclosure.Originality/valueThis is the first study of the association between the level of ICD and the value relevance of financial reporting for market participants in Kuwait. It therefore extends and confirms the prior literature by broadening its scope to include frontier markets. Furthermore, it provides empirical evidence in support of recent calls from regulators and professional bodies for information that supplements and complements traditional financial reporting.

Intellectual capital disclosure determinants and its effects on the market capitalization: evidence from Indonesian listed companies

In the current era of knowledge economy, intellectual capital (IC) is the main source of company’s competitive advantage. The role of IC has become one of the main factors of company’s value creation process. Since companies rely more on their intangibles (including IC), management must provide an appropriate annual report in which discloses information regarding IC in order to give a better information to the related parties. The aim of this study is to examine variables that expected to have a significant influence to the level of intellectual capital disclosure (ICD) practices in Indonesian listed companies’ annual reports. A content analysis method is used to examine the ICD level, based on the framework developed by Li et al. (2008). The IC information was collected from 135 Indonesian LQ45 listed companies, which derived from their annual reports from the year 2012 to 2014. Sample companies are classified into two groups of industries: high- and low profile industries in order to analyze differences in IC reporting practices between the two groups. The empirical results proved that company size, industry type and market capitalization are significantly associated with the ICD, while it is shown that the influence of company profitability on the level of ICD is not significant. Furthermore, it is revealed that there is no significant difference with regard to the intellectual capital disclosure practices between companies in high- and low-profile industries.

Extent and Determinants of Intellectual Capital Disclosures by Top Listed Companies in Malaysia

The purpose of this paper was to examine the extent of intellectual capital disclosures and the determinants of such disclosures by the Malaysian companies. A disclosure index for the intellectual capital information consisting of 20 items, using the annual reports of top 100 companies listed in Bursa Malaysia as on December 31, 2013, was developed. Multiple regression was used to test 12 hypotheses, using the data collected from the same annual reports. The results revealed that the intellectual capital disclosure level had increased as compared to the prior studies in Malaysia that suggests increased corporate awareness regarding intellectual capital disclosures, though the disclosure level was lower as compared to the other advanced countries. The results provided evidence that company size, leverage, and industry type significantly affected the intellectual capital disclosure levels. However, the intellectual capital disclosure levels did not have a significant relationship with return on total assets, board independence, audit committee independence, company age, complexity, foreign shareholding, institutional shareholding, and auditor size. The adjusted R square, an explanatory power of the model, was 52%. We also discussed the implications for the standard-setters and regulators. This study makes an incremental contribution to the literature on the intellectual capital disclosures in the Malaysian context.

Reporting Intellectual Capital in Annual Reports: Evidence from Indonesia

This exploratory study which replicates the content analysis methodology of Guthrie et all (1999, 2004) towards Intellectual Capital (IC) disclosures in the annual report has set several objectives. Primarily, the empirical investigation assesses the extent to which Indonesian listed companies are publicly reporting their IC both the amount and type of information being reported. Secondly, the investigation also examines the extent to which the various categories of IC are represented in the annual reports of the sample companies. Finally, the study explores the extent to which the level of IC disclosures could be related to companies' characteristics such as industry category, age, ownership structure and market capitalization. The sample was Indonesia's 23 largest companies listed in the Jakarta Stock Exchange. In light of research limitations, the preliminary and tentative indings of this study indicate that irst of all, similar to indings worldwide, Indonesian companies have substantial intellectual capital and they do aware and disclose their intellectual capital in the annual reports. Secondly, IC that tends to be most often reported is relational capital, followed by human capital and organizational capital. Thirdly, even though the trend in IC disclosure as a whole is generally increasing, there is no conclusive and predictable pattern found. Fourthly, the IC identiied and reported is inconsistent as no framework available in helping the companies discloses intellectual capital. Fifthly, most of the intellectual capital components identiied are in qualitative format. Sixthly, even though the study did not ind a conclusive evidence regarding the relationship between the level of IC disclosure and company characteristics such as industry, age, ownership structure, and market capitalization, however some indings are noteworthy. Finally, a comprehensive framework is yet to be developed, especially for collecting and reporting IC formation for consistency and comparability purposes. );} // --> activate javascript

Australian universities and intellectual capital reporting: Case study: The group of eight

Australian universities are the major exporter of higher education in the country. As knowledge producers, they face the challenges of globalization, and the financial resources needed to maintain their competitive advantage. The current funding systems that use traditional resources like students’ fees and government grants are unable to meet these requirements. This could well force Australian universities to improve their structures; aiming for a higher international standard and recognition of a more visible and dynamic competitive system to attract funds. The purpose of this paper is to investigate the level of intellectual capital disclosure and the existence of any standalone intellectual capital report (ICR) by Australian universities. Four universities from the eight leading Australian universities known as the Group of Eight (Go8) have been chosen at random for this study. The universities in the Group of Eight compared to other Australian universities are highly research-concentrated and subsequently, have valued reputations. Findings indicate that sample universities disclose some intellectual capital information via their annual reports. However, there has been no attempt, at the institutional or systems-wide level, to produce a standalone intellectual capital report (ICR) with standard indicators. In fact, a low rate of innovation, poor human resources and a weak relationship with business need a new managerial approach. Accordingly, results suggest a change within the current system. This study strongly recommends Australian universities to utilize a universal framework for measuring, managing and reporting of intellectual capital information to meet the global and competitive challenges ahead. Currently, European universities – as Australian competitors - are required to disclose a standalone intellectual capital report to construct a harmonized national university system. Theoretical implications of this paper assist with the classification and search for appropriate indicators for measurement and disclosure of Intellectual capital in universities. The practical implication of this paper could be of interest to many different parties, such as institutional investors, managers, policy makers and university scholars.

Intellectual capital disclosure and accounting standards

PurposeThis study aims to investigate the association between the intellectual capital disclosure level and the mandatory adoption of international financial reporting standards (IFRS). This paper reports an empirical evidence for the impact of the mandatory adoption of IFRS on the disclosure level of intellectual capital, intangible and knowledge assets. Intellectual capital is categorized into process focus, customer focus, human focus, research and development focus. The linkages between intellectual capital and IFRS adoption are investigated in companies of high technology sector in the UK. A novel approach to measure the effect of the IFRS adoption on intellectual capital disclosure level is presented.Design/methodology/approachThe proposed measure was adopted from the information retrieval algorithm and intellectual capital framework. The empirical model was expanded from the econometric model. The primary data for investigating the interrelationships between intellectual capital and IFRS adopting were hand collected from London Stock Exchange and listed firms' web sites. A comprehensive intellectual capital, intangible assets, and knowledge assets' dictionary were built based on related literature.FindingsThis study reports that the overall accuracy of information retrieval application is up to 78.2 percent. The disclosures of intellectual capital items are closely associated with the IFRS adoption. The results suggest that in older or larger companies, the intellectual capital disclosures increase in the post‐adoption period. Overall, the results confirm that companies in the high‐tech industry are associated with a higher disclosure level following the mandatory adoption of IFRS.Originality/valueThe adaption of information retrieval technique and intellectual capital framework enhances the understanding of the usefulness and readability of annual reports in the post‐adoption period of IFRS in high‐tech industry. This study corroborates and complements those of extant research and sheds light on the effect of IFRS adoption on voluntary disclosures. These findings will enable top management around the world to realize the impact of the IFRS adoption on intellectual capital elements so that long‐term strategic knowledge assets management may be emphasized for sustainable competitive edge.

Impact of Global Financial Crisis and other Determinants on Intellectual Capital Disclosure in UAE Banks

The aim of this study is to investigate the impact of global financial crisis, market structure and other factors on the disclosure level of intellectual capital by UAE Banks over the period 2005-2009. The Multiple Regression Analysis is used to test the relationship between the level of intellectual capital disclosure as a dependent variable and global financial disclosure, market structure and other independent variables. The results show that global financial crisis and market structure variables, which have not been considered in previous studies, have a significant impact on the level of intellectual capital disclosure. In addition, the results show that bank risk, role duality and bank age have a significant impact on the level of intellectual capital disclosure. This paper adds to the literature on the determinants of the level of intellectual capital disclosure in banks. In particular, it tests the new theories that the global financial crisis and market structure have impact on the level of intellectual capital disclosure.