Intellectual Capital and Valuation: Challenges in the Voluntary Disclosure of Value Drivers

8 Pages Posted: 18 Oct 2009

See all articles by Richard Petty

Richard Petty

Macquarie University; Macquarie University, Faculty of Business and Economics

Suresh Cuganesan

Swinburne University of Technology

Nigel Finch

Saki Partners

Guy Ford

Macquarie University - Graduate School of Management

Date Written: October 17, 2009

Abstract

Many commentators have identified the pivotal role of intellectual capital in the valuation of firms and the determination of their future earnings. Innovation in voluntary disclosure of intellectual capital lead by European firms, such as Celemi and Skandia, has generated a plethora of new reporting frameworks such as the Balanced Scorecard. However, there has been little support by the accounting profession to recognise the value of intellectual capital or adopt a common disclosure framework. There has also been very little progress by firms in extending their voluntary reporting frameworks, beyond just rhetoric, and attempting to quantify their intellectual capital. This paper will critically evaluate the challenges faced by firms in disclosing the elements and value of their intellectual capital to the market.

Keywords: intellectual capital, valuation, reporting, voluntary disclosure

JEL Classification: M40, M41

Suggested Citation

Petty, Richard and Cuganesan, Suresh and Finch, Nigel and Ford, Guy, Intellectual Capital and Valuation: Challenges in the Voluntary Disclosure of Value Drivers (October 17, 2009). Available at SSRN: https://ssrn.com/abstract=1490208 or http://dx.doi.org/10.2139/ssrn.1490208

Richard Petty

Macquarie University ( email )

North Ryde
Sydney, New South Wales 2109
Australia

Macquarie University, Faculty of Business and Economics ( email )

Australia

Suresh Cuganesan

Swinburne University of Technology ( email )

Cnr Wakefield and William Streets, Hawthorn Victor
3122 Victoria, Victoria 3122
Australia
+61 3 9214 8388 (Phone)
+61 3 9819 2117 (Fax)

Nigel Finch (Contact Author)

Saki Partners ( email )

Australia

Guy Ford

Macquarie University - Graduate School of Management ( email )

99 Talavera Road
Sydney, NSW 2113
Australia
+61-2-9850-7813 (Phone)
+61-2-9850-9019 (Fax)

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