Corporate Governance and Intellectual Capital: Evidence From Gulf Cooperation Council Countries
Academy of Accounting and Financial Studies Journal Volume 22, Number 1, 2018
12 Pages Posted: 3 Mar 2018
Date Written: March 3, 2018
Corporate governance is considered as a management mechanism tool which enhances the ability of firms in disclosing relevant information for decision makers. Subsequently, good corporate governance enriches financial statements by reporting information regarding intellectual capital which indicates the ability of firms in managing their own assets and reflecting their value. Accordingly, the current research focuses on the relationship of corporate governance with intellectual capital disclosure in the GCC Countries. A regression model was developed to measure the relationship between the variables. The results showed that the total level of intellectual capital was 73% and the level of corporate governance applied by the GCC firms was 78%. Moreover, the findings indicate that there is a weak negative relationship between CGL and ICL. The current research extended the previous studies conducted in the GCC Countries by using a wider checklist, using a larger sample (274) and conducting a comparison study among the all GCC countries. As a result, this paper is important as it seeks to contribute empirical evidence to the literature regarding the intellectual capital and corporate governance in developing countries, particularly in the GCC Countries.
Keywords: Intellectual Capital, Corporate Governance, Human Capital, Structural Capital, Relational Capital
JEL Classification: O34, E24, G32, E22
Suggested Citation: Suggested Citation