Publication
Title
Intellectual capital disclosure, cost of finance and firm value
Author
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
Language
English
Source (journal)
Management decision. - Bradford
Publication
Bradford : 2009
ISSN
0025-1747
Volume/pages
47:10(2009), p. 1536-1554
ISI
000272914600003
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 19.01.2010
Last edited 19.06.2017
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