IC disclosures in IPO prospectuses: Evidence from Malaysia

Azwan Abdul Rashid, Muhd Kamil Ibrahim, Radiah Othman, Kok Fong See

Research output: Contribution to journalArticle

36 Citations (Scopus)

Abstract

Purpose: This study aims to investigate the factors influencing the disclosure of intellectual capital (IC) information in the Malaysian initial public offering (IPO) prospectus using multiple regression analysis. Design/methodology/approach: The sample consists of 130 companies in the technology and industrial products sectors of Bursa Malaysia that went through an IPO between 2004 and 2008. Initially, the extent of the IC disclosure index is quantified using content analysis methodology. The multiple regression analysis is then used to examine the associations of nine potential explanatory variables with IC disclosure level. Findings: In general, the results provide evidence that board size, board independence, age, leverage, underwriter and listing board significantly influence the extent of IC disclosure in an IPO prospectus. Nonetheless, the effect of each explanatory variable may vary in each estimated parameter of the multiple regression models. Three variables, board diversity, size and auditor, were not significant. Originality/value: Although many studies have examined the content of and reasons for IC disclosures, this study provides empirical evidence in this specific area, i.e. to explore the determinants of IC disclosure, particularly from the perspective of IPO prospectuses, in emerging countries such as Malaysia.

Original languageEnglish
Pages (from-to)57-80
Number of pages24
JournalJournal of Intellectual Capital
Volume13
Issue number1
DOIs
Publication statusPublished - 01 Jan 2012

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All Science Journal Classification (ASJC) codes

  • Education
  • Business, Management and Accounting(all)

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