Title
Intellectual capital disclosure, cost of finance and firm value Intellectual capital disclosure, cost of finance and firm value
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Bradford ,
Subject
Economics
Source (journal)
Management decision. - Bradford
Volume/pages
47(2009) :10 , p. 1536-1554
ISSN
0025-1747
ISI
000272914600003
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
Purpose The purpose of this paper is to examine empirically the impact of web-based intellectual capital (IC) reporting on firms value and its cost of finance. Design/methodology/approach A content-analysis of corporate web sites is conducted from four continental European countries (Belgium, France, Germany and The Netherlands) on the presence of IC information. Simultaneous regression modelling is used to control for endogeneity within a firms disclosure strategy. Findings The data show that cross-sectional differences in the extent of IC disclosure are positively associated with firm value. Greater IC disclosure in continental Europe is associated with lower information asymmetry, lower implied cost of equity capital and lower rate of interest paid. Research limitations/implications The study is restricted to an analysis of firms benefits of increased web-based disclosure without considering related costs. Practical implications The results of the study show that firms tend to benefit economically from better IC disclosure. Originality/value Existing evidence is extended by considering the capital market implications of IC related disclosure and web-based related disclosure
E-info
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