Assessing the information content of intellectual capital voluntary disclosure by US firms
The purpose of this research is to analyze the information content of “intellectual capital (IC) disclosure” by companies. The content analysis method was used to collect data on the IC disclosure from annual reports of 126 U.S. companies. Using correlation and multiple regression analyses, our results show that the information disclosed on IC, especially quality ones, are considered as value-relevant for investors as they have additional information content in the market valuation of companies. These results imply, therefore, that investors perceive IC as a source of value, although it is not recognized as assets of the company. Our results may encourage managers to voluntarily disclose IC information in order to compensate for the lack of those information in traditional financial statements.