Intellectual capital disclosure in Malaysia

Abstract

This study investigates intellectual capital (IC) disclosure in Malaysian public listed companies. Specifically, this research examines the relationship between IC disclosure and companies' profitability, productivity, and firm size. We measure the IC disclosure using the IC disclosure index and I C disclosure frequency. The sample includes 255 firm-year observations from 2006-2008. The results from our content analysis confirm those of prior research that the IC disclosure has been increasing over time. The study finds that human capital is the most reported intellectual capital disclosure. In addition, we also find that firm size positively contribute to the disclosure of IC. The result of this study added to the body of literature by providing evidence on the relationship between IC disclosure and firms' characteristics.

Relationship between Unionized Companies, Government Ownership and Reporting Human Capital Information in Corporate Annual Reports

“…Many subsequent studies followed the similar genre of Guthrie and Petty (2000) Silva et al 2014 in New Zealand) used corporate annual reports as the study subject. In the Malaysian context, similar studies were conducted by Haji and Ghazali (2012) and Amin, Saringat, Hassan and Ismail (2013). Typically, these studies determined the trend of HCD marginally escalated over times.…”

Corporate Sustainability Reporting and Firm’s Financial Performance in Emerging Markets

“…Sustainable reporting also leads to better performance as the concerns for environment and creation of values would improve corporate reputation and thus gain positive implications. However, there are conflicting conclusions in the literature in the context of corporate reputation and sustainability reporting (Landau et al, (2020); Lozano et al, 2016;Kang & Liu, 2014;Heinze et al, 1999;Amin et al, 2013). On one hand, corporate responsibility commitments could positively impact productivity through proactive communication and motivating purchase intention (Heinze et al, 1999;Cupertino et al, 2019;Dang et al, 2018).…”

Timeliness of Financial Reporting: The Examination of Auditor Tenure and Industry Specialization

“…Second, firms with higher quality earnings are more likely to retain the incumbent (highquality) auditors, or high-quality auditors are more likely to drop risky clients that have lower quality earnings, who will then move to lower quality auditors . Also, firms would avoid changing their auditor if the incumbent auditor produces satisfactory audit work to reduce risk and ensure faster audit process (Amin et al, 2013). Hence, after many years of auditing the client, the auditor knowledge and understanding of the clients' accounts and industry would accumulate and save auditors' time in assessing the clients.…”