Determinants of Intellectual Capital Disclosure : Evidence from Shari’ah Listed Companies
Masturah Ma’in, ‘Ismah Osman, Balkis Harris
Department of Economics and Financial, Studies , Faculty of Business and Management, Universiti Teknologi MARA
Wani Najibah Ibrahim
Arshad Ayub Graduate Business School, Universiti Teknologi MARA
This paper aims to investigate the determinants of intellectual capital disclosure (ICD) in the annual reports of the Malaysian listed Shari’ah approved companies. Using a content analysis, a disclosure index was developed which consists of 31 modified disclosure items to measure the ICD in the 2013 annual reports. The obtained data were analyzed using correlation and regression analysis. This paper also utilizes the ordinary least squares regression analysis to test the relationship between intellectual capital disclosure and company characteristics. The findings show that there is a significant relationship between profitability and intellectual capital disclosure. Although the scope of this study is only limited to one year annual reports for the year 2013, it able to provide a starting point for future research on the issue of transparency and disclosure in Shari’ah approved companies. In addition, the result of this study is expected to give several benefits to the investors and shareholders of listed Shari’ah approved companies, academicians as well as to researchers.
Keywords: Intellectual capital disclosure, Shari’ah companies, Malaysia