The IUP Journal of Corporate Governance
Influence of Corporate Governance and Firm Attributes on Intellectual Capital Disclosure: Evidence from India's Top Listed Companies

Article Details
Pub. Date : Oct , 2022
Product Name : The IUP Journal of Corporate Governance
Product Type : Article
Product Code : IJCG011022
Author Name Yusaf Harun K, V Kavida and Mohammed Muhsin K P
Availability : YES
Subject/Domain : Management
Download Format : PDF Format
No. of Pages : 26



This study looks into the impact of corporate governance and firm attributes on Intellectual Capital (IC) disclosure in Indian publicly listed companies. The IC disclosure was measured using content analysis method. The study examined annual reports of top Indian corporations based on their market value from 2009-2010 to 2018- 2019. The influence of corporate governance and firm attributes on IC disclosure was investigated using panel data analysis. The findings show that corporate governance and firm attributes impact the amount of IC information revealed in Indian listed companies' annual reports. The study focused solely on information reported in annual reports; other forms of corporate communication were not included.


In today's knowledge-based economies, Intellectual Capital (IC) plays a vital role in the value creation process of firms, apart from financial and physical capital. The capacity of organizations to identify, manage, and deploy their intellectual capital to achieve maximum competitive advantage is claimed to be critical to their success (Nahapiet and Ghosal, 1998; and Keenan and Aggestam, 2001). As a result of its potential to develop and sustain competitive advantage and company value (Tayles et al., 2007), ICs are becoming increasingly important. The various elements of IC disclosure are important information for investors since they serve to avoid ambiguity about the company's prospects and enable a more precise assessment (Bukh, 2003). Similarly, Kamat (2019) highlighted that a company's value is determined not only by its physical assets but also by its IC. Despite its gaining significance, there is no consensus on the definition of IC (for example, Stewart, 1997; and Mouritsen, 1998). Previous literature, however, has extensively recognized that IC comprises three sub-categories: structural/internal capital, human capital, and relational/external capital (Stewart, 1997; Sveiby, 1997; and Guthrie and Petty, 2000). Structural Capital (SC) is knowledge found within the organization, and its process consists of organizational routines, procedures, systems, cultures, and databases. Human Capital (HC) is the knowledge found within people, which comprises the skills and abilities of people.