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A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia

Ahmed Haji, Abdifatah and Mohd Ghazali, Nazli Anum (2013) A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia. Asian Review of Accounting, 21 (1). pp. 27-52. ISSN 1321-7348

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Abstract

Purpose – The purpose of this study is to examine the relationship between intellectual capital disclosure (ICD) and corporate governance attributes following the revised code on corporate governance in Malaysia in 2007. Design/methodology/approach – The sample of the present study was drawn from top companies listed on Bursa Malaysia based on their market capitalization for the years 2008, 2009 and 2010. A self-constructed disclosure index was used to assess the extent and quality of ICDs. The panel data regression analysis was employed to examine the relationship between ICDs and corporate governance. Findings – The results revealed that all corporate governance attributes namely board size, independent directors, board effectiveness and position of the chairman (except family members on the board) were significant in explaining the extent and quality of ICDs in the expected direction. Director ownership was found to be consistent in negatively relating to both the extent and quality of ICDs. Government ownership was marginally significant in determining the extent of ICDs. Practical implications – The findings suggest that the revised corporate governance code has a positive impact on ICD at least in the case of large Malaysian listed companies. This implies that regulatory efforts in enhancing corporate governance in Malaysia is starting to prove fruitful in encouraging companies to be involved in more IC investment and hence disclosure. Originality/value – This paper is one of the few studies which investigate the influence of corporate governance on ICDs longitudinally in a developing country following revision to the corporate governance code in Malaysia in 2007. Keywords Intellectual capital disclosure, Corporate governance, Ownership structure, Annual reports, Malaysia

Item Type: Article (Journal)
Additional Information: 1361/30478
Uncontrolled Keywords: Intellectual capital disclosure, Corporate governance, Ownership structure, Annual reports, Malaysia
Subjects: H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5387 Business ethics
H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Prof. Dr. Nazli Anum Mohd Ghazali
Date Deposited: 16 Jul 2013 12:04
Last Modified: 03 Aug 2013 14:01
URI: http://irep.iium.edu.my/id/eprint/30478

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