Purpose – The purpose of this paper is to offer an empirical account of how a group of financial professionals uses intellectual capital (IC) information, and the value that the group imputes to IC reporting. The paper also aims to understand the group's ability to privately access information that might help them determine the value of a company's IC in support of their decision‐making. Design/methodology/approach – Survey administered to a group of financial professionals in Hong Kong. Findings – Respondents would like companies to be more transparent and provide more information on their IC. Respondents believe that greater IC disclosure would be rewarded with an increase in the company's share price – even though few respondents thought that they would pay more themselves for enhanced disclosure. Further, most respondents seem to be currently addressing their IC information needs through private information channels, and rate the publicly provided information as poorly suited to their needs. Practical implications – Greater regulatory control may be needed to ensure that information being communicated privately also enters the public domain in a timely fashion. It is also suggested that making market participants more aware of the positive effects of voluntary disclosure on stock prices may lead to an increase in voluntary disclosure. Originality/value – The paper provides empirical evidence on the value relevance of IC information from a user's perspective.
Management Research News – Emerald Publishing
Published: May 23, 2008
Keywords: Intellectual capital; Disclosure; Regulation; Accounting