CORPORATE GOVERNANCE AND INTELLECTUAL CAPITAL DISCLOSURE

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Abstract

This study examines whether facets of corporate governance (board size, proportion of independent directors on the board, board committees, and Big 4 auditor) promote the voluntary disclosure of intellectual capital in annual reports in Australia and New Zealand and whether this is country dependent. Data was collected from OSIRIS and annual reports with disclosure detected through a rigorous electronic word search approach. Statistical testing with OLS regression followed. The presence of nomination committees and a majority of independent directors on the board were found to be significant positive predictors of intellectual capital disclosure in both countries, and larger board sizes in Australian companies enhanced intellectual capital disclosure. These results concur with resource dependency and stakeholder theoretical arguments.

Keywords: Corporate Governance, Board of Directors, Independent Directors, Big 4

How to cite this paper: Whiting, R.H., Birch, G.Y. (2016). Corporate governance and intellectual capital disclosure. Corporate Ownership & Control, 13(2-1), 250-261. https://doi.org/10.22495/cocv13i2c1p6