The Level of Disclosing Intellectual Capital in the Gulf Cooperation Council Countries
International Research Journal of Finance and Economics, Issue 159, January 2017
10 Pages Posted: 9 Mar 2017 Last revised: 22 Mar 2017
Date Written: January 8, 2017
Intellectual Capital (IC) is considered as a management style in operating a firm’s assets. The level of disclosing intellectual capital in the Gulf Cooperation Council Countries differs from one company to the other due to its voluntary nature and the lack of appropriate regulations. Therefore, this study aims to measure the level of disclosing intellectual capital in the Gulf Cooperation Council Countries. Extensive literature review was carried out and a checklist of 78 items was developed to measure the level of disclosing intellectual capital for the companies that are listed in the Gulf Cooperation Council Bourses. The findings show that the overall level of intellectual capital disclosed in the Gulf Cooperation Council is 73% but it varies across the sampled firms according to countries and industry type. The study recommends that the GCC Bourses have to develop a formal guideline for intellectual capital disclosure in order to create harmony in disclosing information and equality between users of financial information and at the same time to enhance firms’ value.
Keywords: Intellectual Capital; Human Capital; Structural Capital; Relational Capital; Voluntary Disclosure
JEL Classification: O34; E24; G32; E22
Suggested Citation: Suggested Citation