IC Disclosures in IPO Prospectuses: Evidence from Malaysia

Journal of Intellectual Capital, Vol. 13 No. 1, 2012 pp. 57-80

Emerald Group Publishing Limited, 1469-1930, DOI 10.1108/14691931211196213

24 Pages Posted: 15 Oct 2012

See all articles by Azwan Abdul Rashid

Azwan Abdul Rashid

affiliation not provided to SSRN

Muhd Kamil Ibrahim

Taibah University

Radiah Othman

Massey University

Date Written: October 15, 2012

Abstract

Purpose- This study aims to investigate the factors influencing the disclosure of intellectual capital (IC) information in the Malaysian initial public offering (IPO) prospectus using multiple regression analysis.

Design/methodology/approach- The sample consists of 130 companies in the technology and industrial products sectors of Bursa Malaysia that went through an IPO between 2004 and 2008. Initially, the extent of the IC disclosure index is quantified using content analysis methodology. The multiple regression analysis is then used to examine the associations of nine potential explanatory variables with IC disclosure level.

Findings- In general, the results provide evidence that board size, board independence, age, leverage, underwriter and listing board significantly influence the extent of IC disclosure in an IPO prospectus. Nonetheless, the effect of each explanatory variable may vary in each estimated parameter of the multiple regression models. Three variables, board diversity, size and auditor, were not significant.

Originality/value- Although many studies have examined the content of and reasons for IC disclosures, this study provides empirical evidence in this specific area, i.e. to explore the determinants of IC disclosure, particularly from the perspective of IPO prospectuses, in emerging countries such as Malaysia.

Keywords: Intellectual capital, Initial public offering, Content analysis, Multiple regression analysis

Suggested Citation

Abdul Rashid, Azwan and Ibrahim, Muhd Kamil and Othman, Radiah, IC Disclosures in IPO Prospectuses: Evidence from Malaysia (October 15, 2012). Journal of Intellectual Capital, Vol. 13 No. 1, 2012 pp. 57-80 , Emerald Group Publishing Limited, 1469-1930, DOI 10.1108/14691931211196213, Available at SSRN: https://ssrn.com/abstract=2162185

Azwan Abdul Rashid

affiliation not provided to SSRN ( email )

Muhd Kamil Ibrahim

Taibah University ( email )

Prince Naif Ibn Abdulaziz, Tayba, Medina Saudi Ara
Mediana, Madinah
Saudi Arabia

Radiah Othman (Contact Author)

Massey University ( email )

School of Accountancy
Palmerston North
New Zealand

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