Title: Assessing the market value effects of intellectual capital disclosure: insights from New Zealand

Authors: Zeinab Abdolzahraei; Jun-Hwa Cheah; Wei Chong Choo; Abdul Rashid Abdullah

Addresses: School of Business and Economics, Universiti Putra Malaysia, Serdang, Selangor, Malaysia ' School of Business and Economics, Universiti Putra Malaysia, Serdang, Selangor, Malaysia ' Institute for Mathematical Research, Universiti Putra Malaysia, 43400 Serdang Selangor, Malaysia ' Universiti Keusahawanan Koperasi, 103 Jalan Templer, 46700 Petaling Jaya, Selangor, Malaysia

Abstract: This study investigates the impact of intellectual capital disclosure on the market value of listed firms in New Zealand from 2016 to 2018, using a stakeholder theory perspective. Given modern investors' heightened interest in firms' intellectual aspects, empirical exploration is imperative. Employing content analysis to assess intellectual capital disclosure levels and multiple regression for measuring impact, our research is based on a sample of 114 observations across 38 firms. Empirical findings affirm a strong positive correlation between intellectual capital disclosure and market value for New Zealand-listed firms during the study period. Notably, every element of intellectual capital disclosure contributes positively to market value, with human capital disclosure exhibiting the most significant influence, despite being the least reported component. These results align with stakeholder theory, emphasising the pivotal role of disclosure in influencing stakeholder decisions, particularly among investors. Our study systematically assesses each disclosure component's effect on market value and empirically tests intellectual capital disclosure's impact in New Zealand's developed economy.

Keywords: intellectual capital; market capitalisation; market value; intellectual capital disclosure; New Zealand; stakeholder theory; structural capital; human capital; relational capital; intangibles.

DOI: 10.1504/IJLIC.2024.137575

International Journal of Learning and Intellectual Capital, 2024 Vol.21 No.2, pp.219 - 248

Received: 26 Aug 2022
Accepted: 19 May 2023
Published online: 26 Mar 2024 *

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