INTELLECTUAL CAPITAL MYTHS: COMMENTS ON LITERATURE REVIEW

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Abstract

This article contributes to the growing body of literature exploring the important role that information transparency plays in strengthening the national corporate governance regime. We review the 2007 amendments to the Canadian reporting legislation with the particular emphasis on sections pertaining to executive compensation and boards of directors. Taking into consideration the specificities of the „comply-or-explain‟ system in Canada, we seek to uncover the extent to which publicly-listed firms comply with these newly amended standards of corporate governance reporting. Based on a comparison of 403 proxy circulars issued in the post-amendment period, we identified important cross-firm variations in the type and format of disclosed information on executive compensation and corporate boards of directors. In order to address the problems that inter-organizational disclosure discrepancies generate for governance researchers and analysts, we provide several recommendations on how Canadian publicly-traded companies can improve their reporting practices.

Keywords: Board of Directors, Canada, Compliance, Corporate Governance, Disclosure Legislation, Executive Compensation

How to cite this paper: Nerantzidis, M., Koutsoukis, N.-S., Kostagiolas, P. A., & Karoulia, Z. (2013). Intellectual capital myths: Comments on literature review. Corporate Ownership & Control, 10(3-1), 169-176. https://doi.org/10.22495/cocv10i3c1art1