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

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...

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Main Authors:	Ahmed Haji, Abdifatah, Mohd Ghazali, Nazli Anum
Format:	Article
Language:	English
Published:	Emerald Group Publishing Limited 2013
Subjects:	HF5387 Business ethics HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/30478/ http://irep.iium.edu.my/30478/ http://irep.iium.edu.my/30478/1/ICD_published.pdf

id	iium-30478
recordtype	eprints
spelling	iium-304782013-08-03T06:01:35Z http://irep.iium.edu.my/30478/ A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia Ahmed Haji, Abdifatah Mohd Ghazali, Nazli Anum HF5387 Business ethics HF5601 Accounting. Bookkeeping 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 Emerald Group Publishing Limited 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/30478/1/ICD_published.pdf 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 http://www.emeraldinsight.com/journals.htm?articleid=17083295
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5387 Business ethics HF5601 Accounting. Bookkeeping
spellingShingle	HF5387 Business ethics HF5601 Accounting. Bookkeeping Ahmed Haji, Abdifatah Mohd Ghazali, Nazli Anum A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
description	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
format	Article
author	Ahmed Haji, Abdifatah Mohd Ghazali, Nazli Anum
author_facet	Ahmed Haji, Abdifatah Mohd Ghazali, Nazli Anum
author_sort	Ahmed Haji, Abdifatah
title	A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
title_short	A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
title_full	A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
title_fullStr	A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
title_full_unstemmed	A longitudinal examination of intellectual capital disclosures and corporate governance attributes in Malaysia
title_sort	longitudinal examination of intellectual capital disclosures and corporate governance attributes in malaysia
publisher	Emerald Group Publishing Limited
publishDate	2013
url	http://irep.iium.edu.my/30478/ http://irep.iium.edu.my/30478/ http://irep.iium.edu.my/30478/1/ICD_published.pdf
first_indexed	2023-09-18T20:44:37Z
last_indexed	2023-09-18T20:44:37Z
_version_	1777409591659724800

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

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