INTELLECTUAL CAPITAL DISCLOSURE: THE FUNCTION AND LEVEL OF DISCLOSURE

Abstract

In this knowledge-driven economy, the users would like companies to be more transparent by providing more information on the investment of intellectual capital. Intellectual capital able to bring positive values and superior performance to the firms, thus the stakeholders demand for more information on how the intellectual capital has been invested and managed. As a result, most of the companies are calling for a voluntary disclosure of their intellectual capital which can create a value in the future. This conceptual paper discussed an overview of intellectual capital disclosure which provide relevant information for the user. The paper focuses on first, the level of intellectual capital disclosure and second, the effects of intellectual capital disclosure on firm performance.