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Intellectual Capital Disclosure by Listed Companies in Jordan: A Comparative Inter-sector Analysis

Author

Listed:
  • Krayyem Al-Hajaya

    (Department of Accounting, Faculty of Business, Mu’tah University, Jordan.)

  • Mohammad Saleh Altarawneh

    (Department of Accounting, Faculty of Business, Mu’tah University, Jordan.)

  • Bayan Altarawneh

    (Department of Accounting, Faculty of Business, Mu’tah University, Jordan.)

Abstract

This study examines the level and quality of the disclosures of intellectual capital (IC) by listed companies in Jordan as a case for emerging economies, especially those from Arab nations. Using content analysis, 2016’s annual reports of all 215 listed companies on the Amman Stock Exchange (ASE) were analyzed and compared for the main sectors: financial, service and manufacturing. The key findings indicate a low disclosure level of IC. The most disclosed components of IC were the items of internal capital. Financial companies were found to disclose the most items, followed by manufacturing firms and finally the service sector. This research has implications for policy makers and standard setters regarding mechanisms to boost the practice of IC disclosure in annual reports. This in turn enhances the quality of disclosed information as well as facilitating a better assessment of firm value. This research fills a void in the comparative study of IC disclosure practices among main sectors in the ASE, Jordan.

Suggested Citation

  • Krayyem Al-Hajaya & Mohammad Saleh Altarawneh & Bayan Altarawneh, 2019. "Intellectual Capital Disclosure by Listed Companies in Jordan: A Comparative Inter-sector Analysis," International Review of Management and Marketing, Econjournals, vol. 9(1), pages 109-116.
    • Handle: RePEc:eco:journ3:2019-01-14
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    References listed on IDEAS

    as
    1. Bharathi Kamath, 2017. "Determinants of intellectual capital disclosure: evidence from India," Journal of Financial Reporting and Accounting, Emerald Group Publishing Limited, vol. 15(3), pages 367-391, October.
    2. Striukova, Ludmila & Unerman, Jeffrey & Guthrie, James, 2008. "Corporate reporting of intellectual capital: Evidence from UK companies," The British Accounting Review, Elsevier, vol. 40(4), pages 297-313.
    3. Mishari M. Alfraih, 2018. "What drives intellectual capital reporting? Evidence from Kuwait," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 67(3), pages 571-589, March.
    4. Mishari M. Alfraih, 2017. "The value relevance of intellectual capital disclosure: empirical evidence from Kuwait," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 25(1), pages 22-38, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Muhammad Akbar Ilma & Murtanto Murtanto, 2022. "Bank role in preventing money laundering and cyber security," Technium Social Sciences Journal, Technium Science, vol. 37(1), pages 287-299, November.

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    More about this item

    Keywords

    s intellectual capital disclosure; intangibles disclosure; ICD; corporate reporting; ASE; Jordan.;
    All these keywords.

    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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