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Disclosure of Intellectual Capital in Annual Reports: An Exploratory Study of Indian IT Corporations

Author

Listed:
  • Madan Lal Bhasin

    (Bang College of Business-KIMEP, Republic of KAZAKHSTAN)

Abstract

Knowledge, innovation, information technology, and people are the key contributories in the future of any organization, and IC is the key driver of market value in the "knowledge" economy. Voluntary disclosure of IC information in the annual reports is done by a few leading corporations. The omission of IC information, therefore, may adversely influence the quality of decisions made by shareholders, or lead to material misstatements. This study attempts to provide an insight into the "narrative" style of IC disclosures done by the Indian corporations. In order to survey the recent IC disclosure scenario, we conducted a study of 16 Indian IT corporations in which the "content analysis" was done on their 2007 to 2009 annual reports. The results of this study confirmed that IC disclosure by these IT corporations is almost negligible and its disclosure had not received any preference from the mentors of these corporations. IC reports may initially be used for "internal" management purposes; but an "external" stakeholder-focus of IC report should be the ultimate goal.

Suggested Citation

  • Madan Lal Bhasin, 2011. "Disclosure of Intellectual Capital in Annual Reports: An Exploratory Study of Indian IT Corporations," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 63-73, August.
    • Handle: RePEc:bap:journl:110405
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    References listed on IDEAS

    as
    1. Lee Parker, 2007. "Financial and external reporting research: the broadening corporate governance challenge," Accounting and Business Research, Taylor & Francis Journals, vol. 37(1), pages 39-54.
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    Cited by:

    1. Firas A.N Al-Dalabih, 2018. "The Level of Disclosure of Intellectual Capital at Jordanian Development Banks," International Business Research, Canadian Center of Science and Education, vol. 11(11), pages 176-186, November.
    2. Francesco Caputo & Manlio Del Giudice & Federica Evangelista & Giuseppe Russo, 2016. "Corporate disclosure and intellectual capital: the light side of information asymmetry," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 8(1), pages 75-96.

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    More about this item

    Keywords

    Intellectual capital; disclosure scenario; IT corporations; India; IC reports;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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