Nexus Between Intellectual Capital Disclosure and Corporate Governance Quality: Evidence from IT Companies in India
Sumedha Journal of Management; Hyderabad Vol. 7, Iss. 2, (Apr-Jun 2018): 199-21
Posted: 19 Dec 2019
Date Written: June 14, 2018
Present days economic situations are changing rapidly. In view of liberalization, globalization and privatization, the business organization is more towards following the system which not only caters to the national standard but also to cater information needed by the stakeholders to make decisions about the corporates. Prior studies are underlining that traditional information provided by the companies in the annual reports are not sufficient for the stakeholders to reach into the right decision. Hence the importance of disclosing additional information on intellectual capital and social, environment and governance practices of companies arisen. Such disclosure can give a further hand for the company on the market price and the previous studies are identified that the difference between one company's book value and market value is the effect made by the IC of the company. This paper is given an attempt to identify the extent of intellectual capital disclosure and the nexus between intellectual capital disclosure and corporate governance disclosure of IT companies in India. The study has revealed that the IT companies in India are decently reporting the information on IC for the selected period and the companies are giving more importance for relational capital. The current study identified that there have a significant relationship with IC disclosure and corporate governance disclosure practices among the selected companies.
Keywords: Intellectual capital disclosure, corporate governance disclosure, NSE IT index
JEL Classification: g,m
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