SHS Web Conf.
Volume 34, 2017The 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference)
|Number of page(s)||7|
|Section||Financial Accounting and Reporting|
|Published online||14 February 2017|
Intellectual capital disclosure determinants and its effects on the market capitalization: evidence from Indonesian listed companies
Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia
* Corresponding author: firstname.lastname@example.org
Currently, 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 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 . 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 the influence of company profitability on the level of ICD is not significant. Furthermore, it is revealed that there is no significant difference in the intellectual capital disclosure practices between companies in high- and low-profile industries.
Key words: Intellectual capital disclosure / Content analysis / Annual report / Industry type / LQ45 / Indonesia Stock Exchange / Independent t-test / Market Capitalization / ROA
© The Authors, published by EDP Sciences, 2017
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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