IDEAS home Printed from https://ideas.repec.org/a/eco/journ3/2019-01-14.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/irmm/article/download/7381/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/irmm/article/view/7381/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    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)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dolores Gallardo-Vázquez & Luis Enrique Valdez-Juárez & José Luis Lizcano-Álvarez, 2019. "Corporate Social Responsibility and Intellectual Capital: Sources of Competitiveness and Legitimacy in Organizations’ Management Practices," Sustainability, MDPI, vol. 11(20), pages 1-29, October.
    2. Vivien Beattie & Robin Roslender & Sarah Jane Smith, 2013. "Balancing on a Tightrope: Customer Relational Capital, Value Creation and Disclosure," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2013(3-4), pages 19-52.
    3. Bouten, Lies & Everaert, Patricia & Van Liedekerke, Luc & De Moor, Lieven & Christiaens, Johan, 2011. "Corporate social responsibility reporting: A comprehensive picture?," Accounting forum, Elsevier, vol. 35(3), pages 187-204.
    4. Hwan-Yann Su, 2014. "Business Ethics and the Development of Intellectual Capital," Journal of Business Ethics, Springer, vol. 119(1), pages 87-98, January.
    5. An, Yi & Davey, Howard & Eggleton, Ian R.C. & Wang, Zhuquan, 2015. "Intellectual capital disclosure and the information gap: Evidence from China," Advances in accounting, Elsevier, vol. 31(2), pages 179-187.
    6. Neifar, Souhir & Jarboui, Anis, 2018. "Corporate governance and operational risk voluntary disclosure: Evidence from Islamic banks," Research in International Business and Finance, Elsevier, vol. 46(C), pages 43-54.
    7. Abeer Al-Khoury & Sahraa Anwer Hussein & Muthana Abdulwhab & Zainab M. Aljuboori & Hossam Haddad & Mostafa A. Ali & Ibtihal A. Abed & Hakeem Hammood Flayyih, 2022. "Intellectual Capital History and Trends: A Bibliometric Analysis Using Scopus Database," Sustainability, MDPI, vol. 14(18), pages 1-22, September.
    8. Ilayda Nemlioglu & Sushanta K. Mallick, 2017. "Do Managerial Practices Matter in Innovation and Firm Performance Relations? New Evidence from the UK," European Financial Management, European Financial Management Association, vol. 23(5), pages 1016-1061, October.
    9. Serdarević Nino & Muratović-Dedić Ajla & Karić Inela, 2016. "Doing Business with the State and Firms’ Growth. Grasping Invisible Relational Capital," Scientific Annals of Economics and Business, Sciendo, vol. 63(3), pages 415-428, November.
    10. Lino Cinquini & Emilio Passetti & Andrea Tenucci, 2016. "La sostenibilit? ambientale in azienda: quale relazione tra disclosure volontaria e gestione interna?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2016(2), pages 15-32.
    11. Campbell, David & Abdul Rahman, Mara Ridhuan, 2010. "A longitudinal examination of intellectual capital reporting in Marks & Spencer annual reports, 1978–2008," The British Accounting Review, Elsevier, vol. 42(1), pages 56-70.
    12. Braune, Eric & Sahut, Jean-Michel & Teulon, Fréderic, 2020. "Intangible capital, governance and financial performance," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    13. Subhash Abhayawansa & James Guthrie, 2014. "Importance of Intellectual Capital Information: A Study of Australian Analyst Reports," Australian Accounting Review, CPA Australia, vol. 24(1), pages 66-83, March.
    14. María Dolores García-Gallo & Félix Jiménez-Naharro & Miguel Torres-García & Susan L. Giesecke & José Guadix-Martín, 2020. "Incorporation of the Intangibles into the Spanish Start-Ups by Activity Sector and Region. Improving Their Economic Sustainability," Sustainability, MDPI, vol. 12(10), pages 1-20, May.
    15. Stefano Garzella & Raffaele Fiorentino, 2013. "How to control environmental strategy?," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2013(1), pages 45-76.
    16. Lucrezia Songini & Anna Pistoni & Patrizia Tettamanzi & Fabrizio Fratini & Valentina Minutiello, 2022. "Integrated reporting quality and BoD characteristics: an empirical analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(2), pages 579-620, June.
    17. Mahesh Joshi & Dharminder Singh Ubha & Jasvinder Sidhu, 2011. "Intellectual Capital Disclosures in India," Global Business Review, International Management Institute, vol. 12(1), pages 37-49, February.
    18. Tatiana Garanina & Henri Hussinki & Johannes Dumay, 2021. "Accounting for intangibles and intellectual capital: a literature review from 2000 to 2020," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(4), pages 5111-5140, December.
    19. Nemlioglu, Ilayda & Mallick, Sushanta, 2021. "Effective innovation via better management of firms: The role of leverage in times of crisis," Research Policy, Elsevier, vol. 50(7).
    20. Emilio Passetti & Andrea Tenucci & Lino Cinquini & Marco Frey, 2008. "Communicating Intellectual Capital: Evidence from Social and Sustainability Reporting," Working Papers 200805, Scuola Superiore Sant'Anna of Pisa, Istituto di Management.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ3:2019-01-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.