English Arabic Chinese (Simplified) Filipino French Hindi Japanese Korean Malay Urdu
Year: 2015
Download PDF: Link


In the era of information and knowledge, effective use of Intellectual Capital (IC) is the most important factor that determines the success of a business leading to sustainable competitiveness. Value creation has been a concern for many years and companie s have always been trying to find out the best ways for its improvement. Thus, IC disclosure (ICD) is becoming a major part of companies‘ value in today‘s knowledge-based economy. Currently, ICD is not compulsory and is done by the companies purely on-voluntary‖ basis. IC disclosure has become a critical necessity in this new framework. IC measurement, reporting and disclosures in the developing economy are still at a very nascent stage, especially in India. This is an exploratory study of ICD and measurement by the 8 Indian companies over 5-year period, using content analysis and market value added (MVA) as research methodologies. IC is valued at market value (MV) minus book value (BV). The annual reports of the selected companies were collected from their respective websites. As part of present study, various statistical techniques have been used to analyze the data. The findings show that on an average, the sample companies reported a positive value of IC; significant correlation has been noticed between tangible assets (TA) and net operating profits (NOP). However, no significant difference was found between percentage of IC to MV, and percent of TA to MV. The study finds wide-disparity, low-level, and purely voluntary nature of the ICD made by the selected companies. Unfortunately, the omission of IC information may adversely influence the quality of decisions made by shareholders, or lead to material misstatements. We recommend to the international accounting bodies, to take the lead by establishing a harmonized ICD standard, and provide guidance to the big listed companies for proper measurement and disclosure of IC, both for internal and external users.

Keywords: Intellectual capital, disclosure, market and book value, developing economy.


Prospective Students

Get more information about Student Life, How to Apply and Funding.


Current Students

Access your E-Mail, Learning Portal and Library. International Students Click Here.


Club & Alumni

Northern Varsity Accounting Club (NOVAC) and Alumni.


Album Gallery

View our Photo Gallery and Video Gallery.

Contact Us

Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia 06010 UUM Sintok, Kedah, MALAYSIA
Tel: +6049287201
Fax: +6049287215

Send Us an E-mail


View Us at Google Map


Office Hours

Sunday-Wednesday: 8am to 5pm
Thursday: 8am to 3.30pm
Lunch Time: 1pm to 2pm
Weekend (Friday & Saturday): Closed

Mobile Access

Scan QR code here. This page however is responsive.