Title: Firm characteristics and corporate governance internal mechanism in intellectual capital disclosures of leisure industries in Indonesia and Thailand

Authors: Saarce Elsye Hatane; Ivana Fredlina Kurniawan; Sandra Marcella; Hendri Kwistianus

Addresses: Accounting Department, Petra Christian University, Siwalankerto 121-131, Surabaya, Indonesia ' Accounting Department, Petra Christian University, Siwalankerto 121-131, Surabaya, Indonesia ' Accounting Department, Petra Christian University, Siwalankerto 121-131, Surabaya, Indonesia ' Accounting Department, Petra Christian University, Siwalankerto 121-131, Surabaya, Indonesia

Abstract: This study investigated the function of firm characteristics and internal corporate governance mechanisms in assessing ICD in tourism and hospitality firms. A balanced panel weighted-least square analysis is performed on a sample of 51 Indonesian and Thai companies listed on the Indonesia Stock Exchange (IDX) and Stock Exchange of Thailand (SET), respectively, during the observation period of 2015 to 2019. Board tenure diversity is essential in reducing ICD. With other internal corporate governance mechanisms, government, managerial, and financial institutions ownerships are increasing the ICD. Firm size, leverage, profitability, and cost of equity as proxies of a firm's financial characteristics are favourable for ICD. The contribution of this study is to bolster the research results that prove the validity of agency and signalling theories in explaining the role of corporate governance and financial characteristics as resources that can boost firm's intellectual capital activities and disclosures.

Keywords: intellectual capital disclosures; tenure diversity; cost of equity; financial institution ownership; Indonesia; Thailand.

DOI: 10.1504/IJLIC.2023.133233

International Journal of Learning and Intellectual Capital, 2023 Vol.20 No.5, pp.538 - 556

Received: 30 Jul 2022
Accepted: 16 Feb 2023
Published online: 01 Sep 2023 *

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