Validation of Financial Credibility in the Questionnaire in the Field of Intellectual Capital Disclosure Practices of the Public Listed Companies in Sri Lanka

Abstract

Intellectual Capital is one of the key areas which is a part the intangible assets of the companies. According to the main objective of this study, it is wanted to find out the existing intellectual capital practices in public limited in Sri Lanka and study how they affect the financial credibility of the company. Without recording the intellectual capital figures in the balance sheet, it shows that the financial credibility of the balance sheet has been understated. Therefore,a questionnaire was developed to get the opinions from the accountants specially covering all the sectors of public limited companies and only 35 questionnaires were distributed. The dimensions and the variables were identified through a rigorous literature survey and based on that the conceptualization and operationalization have been done. To check the reliability, internal reliability, spilt half reliability and test retest reliability have been tested. To check the validity, face validity, content validity, construct validity (with factor analysis), convergent validity and discriminant validity have been tested. The dependent variable (Financial Credibility) has been taken as the main constructto test the reliability and validity. Finally, it is clear that the reliability and the validity have been ensured of the questionnaire.