Determinants of Intellectual Capital Disclosures: A Study on DS30 Companies in Bangladesh

Mohammad Omar Faruq(1), Pappu Kumar Dey(2),


(1) Department of Accounting and Information Systems, Faculty of Business Studies, Jahangirnagar University, Savar, Dhaka, Bangladesh
(2) Department of Accounting and Information Systems, Faculty of Business Studies, Jahangirnagar University, Savar, Dhaka, Bangladesh

Abstract

In the contemporary world of corporate reporting, there is an increased attention for reporting intellectual capital (IC). The purpose of this paper is to investigate the level and drivers of IC disclosures in the annual reports of DS30 companies in Bangladesh. Content analysis approach was used to derive the data from the annual reports for the year 2013 to 2017 of DS30 listed firms in Bangladesh. A multiple regression analysis was performed to identify the determinants of IC disclosures. The paper finds that board composition and auditor type have significant positive association with IC disclosures whereas, board gender diversity has significant negative relation. Other than this, board size, sector type, leverage, profitability and firm size has no significant correlation with IC disclosures. Despite the limitations i.e. disclosure index of only 30 items and small sample size (30 firms), this study explores the level of IC disclosures for a longer period of time which is expected to provide a clear picture to the policy maker and stakeholders in decision making. This paper differs in its approach of narrowing down the items of IC disclosures to maintain the perspective of a developing country. In addition, this is the first study of IC disclosure index with consideration of the longer period of time in Bangladesh as per the authors’ best knowledge.

Keywords

human capital; intellectual capital; intellectual capital disclosure; DS30 companies; Bangladesh

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DOI: https://doi.org/10.32455/ijbfa.v1i2.68

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