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Please use this identifier to cite or link to this item: http://hdl.handle.net/1942/12817

Title: Intellectual capital disclosure, cost of finance and firm value
Authors: Orens, Raf
Aerts, Walter
Lybaert, Nadine
Issue Date: 2009
Citation: MANAGEMENT DECISION, 47(10), p. 1536-1554
Abstract: Purpose The purpose of this paper is to examine empirically the impact of web-based intellectual capital (IC) reporting on firm's value and its cost of finance. Design/methodology/approach - A content-analysis of corporate web sites is conducted from four continental E European countries (Belgium, France, Germany and The Netherlands) on the presence of IC information. Simultaneous regression modelling is used to control for endogeneity within a firm's disclosure strategy. Findings - The data show that cross-sectional differences in the extent of IC disclosure are positively associated with firm value. Greater IC disclosure in continental Europe is associated with lower information asymmetry, lower implied cost of equity capital and lower rate of interest paid. Research limitations/implications - The study is restricted to an analysis of firm's benefits of increased web-based disclosure without considering related costs. Practical implications - The results of the study show that firms tend to benefit economically from better IC disclosure. Originality/value - Existing evidence is extended by considering the capital market implications of IC related disclosure and web-based related disclosure.
URI: http://hdl.handle.net/1942/12817
DOI: 10.1108/00251740911004673
ISI #: 000272914600003
ISSN: 0025-1747
Category: A1
Type: Journal Contribution
Validation: ecoom, 2011
Appears in Collections: Research publications

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