Intellectual capital disclosure from literature perspective

Ienciu, Nicoleta Maria

doi:10.1504/ijlic.2014.060808

Cited by 8 publications

(7 citation statements)

References 77 publications

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“…The GFC in 2008 fundamentally changed the world’s economy and increased awareness of business risks. As a result, there is increasing concern with how companies disclose risks and the impact on performance (Mia and Al-Mamun, 2011; Napoli, 2014), and voluntary disclosure is an option companies use to reduce these concerns (Ienciu, 2014). For example, Wang et al ’s (2013) study of Chinese companies (2005-2009) reveals that voluntary information disclosure in annual reports increases significantly up to 2008, and then there is a significant drop in 2009 after the GFC.…”

Section: Literature Reviewmentioning

confidence: 99%

Forward-looking intellectual capital disclosure in IPOs

Garanina

Dumay²

2017

JIC

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Purpose This study contributes to intellectual capital (IC) disclosure research. Focussing on reducing the information asymmetry associated with agency theory, the purpose of this paper is to investigate the extent to which managers and owners disclose IC in initial public offering (IPO) prospectuses. In particular, it examines the influence on post-issue stock performance based on the IPOs of technology companies listing on the NASDAQ from 2002 to 2013. Parallels are drawn to integrated reporting (<IR>), which was developed after the global financial crisis (GFC) because of the perceived shortcomings of regulated forms of financial reporting. Design/methodology/approach The authors apply a two-stage methodology, using content analysis of prospectuses to determine the extent of IC disclosure, then combining this data with market data using regression analysis to determine the influence of IC disclosure in IPO prospectuses on post-issue stock performance. Findings According to the content analysis results, these IPO prospectuses contain significant amounts of IC disclosure for the subsequent analysis. The authors find that after the GFC technology companies disclose more IC information. The econometric analysis also reveals that IC disclosure has a higher influence on post-issue stock performance after the GFC than before. Research limitations/implications The research shows how IPO prospectuses are a valid form of disclosure to investigate the impact of reducing IC information asymmetry because they contain significant amounts of forward-looking non-financial information about the company’s development. Additionally, the results are relevant to discussions about the impact of <IR>. If IC and non-financial disclosures contained in an integrated report are forward-looking and reduce information asymmetry then <IR> may have value relevance to a firm. Practical implications The research confirms that more IC disclosure information in prospectuses may positively influence companies’ post-issue stock performance, especially in the long run. However, the authors caution that disclosing IC information to investors is not the panacea for increased post-IPO share performance. Originality/value This paper is novel because it shows the value relevance of IC disclosures to reduce information asymmetry through its focus on prospectuses, which helps to understand of the potential impact of <IR>.

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Section: Literature Reviewmentioning

confidence: 99%

Forward-looking intellectual capital disclosure in IPOs

Garanina

Dumay²

2017

JIC

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“…Importance of ICD has been examined using two research methods, i.e. content analysis of reports and questionnaire surveys; however, it was noted that content analysis is more prevalent and popular among researchers (Ienciu, 2014). Content analysis seeks to analyse published information systematically, objectively and reliably (Krippendorff, 1980;Guthrie, 1983;Guthrie and Parker, 1990).…”

Section: Intellectual Capital Disclosurementioning

confidence: 99%

Determinants of intellectual capital disclosure: evidence from India

Kamath

2017

JFRA

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Purpose This paper aims at exploring the extent and determinants of intellectual capital disclosure (ICD) in India. Design/methodology/approach Content of annual reports of 200 firms classified on their market capitalization is analysed using search terms to find out the extent and nature of disclosure. The period of study is 2010-11 and 2013-14. Paired t-test is used to see if there is any significant change in the level of disclosure between two time periods. The various determinants and their impacts are captured using a regression equation. Findings The analysis showed evidence that market capitalization, ownership and age of the firms are the major determinants of ICD in India. Performance, size and type of industry mattered only for large-cap firms. Disclosure levels are seen to increase with market capitalization. Human capital and external capital is highly reported by all categories of firms. The overall disclosure by all categories has significantly increased, whereas that of human capital and external capital has increased significantly only in small-cap and mid-cap firms. Originality/value This paper looks at size, market and performance-related variables and their impact on the extent of disclosure. It takes representative firms from three indices based on their market capitalization and evaluates them, thus making results and findings reliable. This is the first paper which takes a large cross section sample from across 12 sectors and also performs a longitudinal analysis. This paper is of interest to managers of firms who can affect the policies of their firms in making robust changes in disclosure practices.

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“…Content analysis is a method for data collection by subjective coding of qualitative data in categories. It allows analysing and counting the type, volume and quality of information disclosed in annual financial reports or other publications such as analysts' reports or press releases (Ienciu 2014). Based on content analysis most studies calculated an index of voluntary ICD (Dumay and Cai 2015) which provides a basis for the quantitative analysis of qualitative ICD information (Abeysekera 2006).…”

Section: Independent Variablesmentioning

confidence: 99%

Value relevance of voluntary intellectual capital disclosure: a meta-analysis

Rieg

Vanini

2023

Rev Manag Sci

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Because mandatory disclosure of intellectual capital (IC) is restricted by accounting regulations, companies invest in voluntary IC disclosure (ICD) to reduce information asymmetries and support an adequate firm valuation by investors and other stakeholders. So far numerous studies analysing the value relevance of voluntary ICD have been published revealing mixed results. Thus, it is the purpose of this paper to statistically integrate and to explain the heterogeneity of results by applying a meta-analysis with 122 effects of 40 primary studies. Our results mainly support the value relevance of voluntary ICD resulting in higher market value, lower cost of equity, and higher accounting performance. We identify weak moderating effects for legal origin, different IC categories and journal ranking. For further improving of disclosure quality, standard setters should develop disclosure standards for voluntary ICD. To reduce the heterogeneity of future studies a standardised scale for the measurement of voluntary ICD should be developed and applied.

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Intellectual capital disclosure from literature perspective

Cited by 8 publications

References 77 publications

Forward-looking intellectual capital disclosure in IPOs

Forward-looking intellectual capital disclosure in IPOs

Determinants of intellectual capital disclosure: evidence from India

Value relevance of voluntary intellectual capital disclosure: a meta-analysis

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