Intellectual capital disclosure in Chinese (mainland) companies
Abstract
Purpose
The purpose of this paper is to report research on the extent and quality of intellectual capital (IC) disclosure of Chinese (mainland) companies that have dual listed A and H shares.
Design/methodology/approach
A comprehensive IC disclosure index was constructed in the study to code, using content analysis methods, the annual reports of 49 dual‐listed companies in mainland China.
Findings
Consistent with previous research, the current level of IC disclosure by mainland Chinese companies is not high. Most of the reported IC attributes are expressed in discursive rather than numerical or monetary terms. However, the average number of items disclosed is high enough to suggest that there is a clear awareness of the significance of IC disclosure. While the disclosure quality is not considered strong, it does suggest that the companies have a modest commitment in communicating their IC information to an external audience.
Research limitations/implications
The research only examines the dual listed companies covering a one‐year period from the 2006 annual reports.
Practical implications
IC disclosure in China is an important part of the movement to greater transparency. Increased appreciation of the levels of IC disclosure may encourage greater debate over IC disclosure in that country.
Originality/value
This paper reviews one of the few research studies of IC disclosure in mainland China. The research also incorporates a quality index of the disclosure.
Keywords
Citation
Yi, A. and Davey, H. (2010), "Intellectual capital disclosure in Chinese (mainland) companies", Journal of Intellectual Capital, Vol. 11 No. 3, pp. 326-347. https://doi.org/10.1108/14691931011064572
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited