The Explanatory Factors of Intellectual Capital Disclosure to Financial Analysts

Abstract

The objective of this paper is to assess the information dealing with intellectual capital that firms disclose in presentations to sell-side analysts and the influences on these disclosures. Analysis of a sample of 257 reports from listed Spanish companies for 2000-2001 shows differences in disclosure levels by categories of intellectual capital. Companies usually report information regarding strategy, customers, and processes; information about research, development, and innovation is less often reported to financial analysts. Larger companies disclose higher levels of intellectual capital information, frequently outside presentations conducted after quarterly, half-year, or annual results announcements.

Keywords: Intellectual capital, private channels, disclosure indexes, financial analysts, non-financial information, voluntary disclosure

JEL Classification: M41, M45, G29