The Effects of Audit Committee Characteristics on Intellectual Capital Disclosures

Posted: 1 May 2018

See all articles by Jing Li

Jing Li

University of Bradford - School of Management

Musa Mangena

University of Nottingham Business School

Richard Pike

University of Bradford

Date Written: 2012

Abstract

This paper, using data from 100 UK listed firms, investigates the relationship between audit committee characteristics and intellectual capital (IC) disclosure. We find that IC disclosure is positively associated with audit committee characteristics of size and frequency of meetings, and negatively associated with audit committee directors' shareholding. We find no significant relationship between IC disclosure and audit committee independence and financial expertise. We also observe variations in the association between audit committee characteristics and IC disclosure at its component level, which suggest that the underlying factors that drive various forms of IC disclosure, i.e. human capital, structural capital and relational capital, are different. These results have important implications for policy-makers who have a responsibility to ensure that shareholders are protected by prescribing appropriate corporate governance structures and accounting regulations/ guidelines.

Keywords: Corporate governance, audit committee characteristics, corporate reporting, intellectual capital disclosure

Suggested Citation

Li, Jing and Mangena, Musa and Pike, Richard, The Effects of Audit Committee Characteristics on Intellectual Capital Disclosures (2012). British Accounting Review, Vol. 44, No. 2, 2012, Available at SSRN: https://ssrn.com/abstract=3162586

Jing Li

University of Bradford - School of Management ( email )

Emm Lane
Bradford, West Yorkshire Bd9 4JL
United Kingdom

Musa Mangena (Contact Author)

University of Nottingham Business School ( email )

United Kingdom

Richard Pike

University of Bradford ( email )

Bradford
Bradford, West Yorkshire BD9 4JL
United Kingdom
01274 384 343 (Phone)
01274 385 680 (Fax)

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