The voluntary disclosure of intellectual capital by listed companies in Zimbabwe
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This paper examines the cross-sectional effect of industry, listing status, company size, gearing, profitability and corporate governance mechanisms on the extent of voluntary disclosure of intellectual capital in 54 Zimbabwe Stock Exchange Companies for the year 2011/2012. The extent of voluntary disclosure is measured by a disclosure index based on intellectual capital attributes included in the narratives and illustrations of the annual reports. The paper predicts that agency costs may be minimised through voluntary disclosure and that the benefits of signalling may outweigh competitive costs that may be more prevalent in some industries. The results suggest that large companies operating in high-tech and innovative industries that are characterised by investment in employees and research and development processes have higher levels of hidden value. These companies, associated with reduced financial risk, the presence of financial expertise on their audit committees and higher levels of profitability, are characterised by higher levels of voluntary disclosure of intellectual capital. In contrast, multiple listing, proportion of non-executive directors and association with "big 5 auditors", are insignificant in explaining the variation in voluntary disclosure of intellectual capital in Zimbabwe.
Additional Citation InformationMkumbuzi, W. P. (2014). The voluntary disclosure of intellectual capital by listed companies in Zimbabwe. University of Zimbabwe Business Review, 2 (2), 43-60.
University of Zimbabwe, Faculty of Commerce