Capital Market Pressures and the Format of Intellectual Capital Disclosure in Intellectual Capital Intensive Firms
Publication date
2014Keyword
United KingdomUK
Content analysis
Intellectual capital disclosure
Market factors
Presentation formats
Rights
(c) 2014 Emerald Publishing. Full-text reproduced in accordance with the publisher's self-archiving policy.Peer-Reviewed
YesOpen Access status
openAccess
Metadata
Show full item recordAbstract
Purpose - A number of studies have examined firms’ intellectual capital (IC) disclosure practices. However, the presentation format of IC disclosure (text, numerical and graphs/pictures) is yet to be examined. In addition, there is little evidence on the impact of capital market pressures on IC disclosure. This study aims to examine the relation between presentation format of IC disclosures and three market factors (market-to-book ratio, share price volatility and multiple listing). Design/methodology/approach - Using content analysis, we examine the level of IC disclosure provided in the annual reports of 100 IC-intensive listed UK firms. A 61-IC-item research instrument is used to measure IC disclosure and regression analysis is employed to examine the relation between disclosure and the market factors, controlling for corporate governance and firm specific variables. Findings - Text is the most commonly used format for IC disclosure, whilst the use of graphs/pictures is very low. The findings of the relation between market factors and IC disclosure are mixed. Market-to-book ratio is significantly related to disclosure in text and numerical, but not to graphs/pictures. Share price volatility is only associated with graphs/pictures, whilst multiple listing is only related to text. Originality/value - Our findings suggest that the impact of capital market pressures on IC disclosure might differ with presentation format. In this context, the study makes a significant contribution to the IC disclosure literature.Version
Accepted manuscriptCitation
Li J and Mangena M (2014) Capital Market Pressures and the Format of Intellectual Capital Disclosure in Intellectual Capital Intensive Firms. Journal of Applied Accounting Research. 15(3): 339-354.Link to Version of Record
https://doi.org/10.1108/JAAR-12-2013-0117Type
Articleae974a485f413a2113503eed53cd6c53
https://doi.org/10.1108/JAAR-12-2013-0117