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http://dx.doi.org/10.13106/jafeb.2020.vol7.no10.119

The Extent of Intellectual Capital Disclosure and Corporate Governance Mechanism to Increase Market Value  

SOLIKHAH, Badingatus (Accounting Department, Faculty of Economics, Universitas Negeri Semarang)
WAHYUDIN, Agus (Accounting Department, Faculty of Economics, Universitas Negeri Semarang)
RAHMAYANTI, Anggraeni Anisa Wara (Accounting Department, Faculty of Economics, Universitas Negeri Semarang)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.10, 2020 , pp. 119-128 More about this Journal
Abstract
The aim of this paper is to investigate the level of intellectual capital disclosure (ICD) in commercial banks listed on the Indonesian Stock Exchange. This paper also observed the effects of ICD and corporate governance mechanism on market value. This study uses content analysis techniques to measure ICD. The paper provides a novel approach to measure the ICD quality in developing countries using a four-numerical coding system. Secondary data were obtained from the financial statements and annual reports of the banks for the period 2011-2014. The data from 31 banks were analyzed using ordinary least square regression. The study reports that the quality of intellectual capital disclosure in Indonesian commercial banks increase steadily. Narrative disclosure dominates the report of intellectual capital in Indonesian banks. The results indicate that the size of audit committee, frequency of audit committee meeting, and intellectual capital disclosure affect positively the market value. Overall, the results indicate intellectual capital disclosure is associated with the market capitalization; these findings indicate that the ICD is a consideration in a stock investment decision. While regulations in Indonesia regarding intellectual capital reporting are not conclusive yet, the information needs of stakeholders have encouraged companies to expand voluntary disclosure.
Keywords
Intellectual Capital Disclosure; Share Ownership; Independent Commissioner; Audit Committee; Market Capitalization;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
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