Audit Committee Mechanism on Intellectual Capital Disclosure Evidence From Indian Listed Companies

Abstract

Here this paper means for, to understand the connection between audit committee mechanisms on non -financial information reporting with particular to intellectual capital. In order to study the relationship, data are collected from BSE Sensex listed companies top with their market capitalization for the period of 2017-2018. The content analysis has been applied to calculate the intellectual capital disclosure rate for the selected companies and later, multiple regression has been applied to check the nexus among audit committee attributes with intellectual capital reporting. The study identified that there is a significant effect by audit committee size on intellectual capital disclosure and surprisingly seen an unexpected negative relationship among independence of audit committee with intellectual capital disclosure. So this study argues that function of the audit committee have to be extended to ensure the quality of reporting by including relevant non-financial information like intellectual capital.

Keywords: Governance, Audit Committee, Intellectual Capital Reporting

JEL Classification: G, M