Intellectual Capital Information Disclosure of Top Indian Corporations

Abstract

Intellectual capital (IC) can prove to be a source of competitive advantage for businesses which may stimulate growth and lead to wealth generation in the long-term. Currently, Intellectual Capital information disclosure is not compulsory and is done on ―voluntary‖ basis. This study measures the intellectual capital information disclosed by top 20 Indian firms by market capitalization by analyzing their annual report of F.Y. 2013-14 using content analysis method. IC information disclosure was very poor according to the study. It was found that there were 43% intellectual capital terms out of 37 which were reported by these firms. Moreover many terms were only once disclosed. 22 terms were not disclosed at all. Among companies, Infosys and ITS reported maximum number of terms whereas Coal India and HDFC didn‘t report anything. Lack of uniformity and standardization was found while disclosing therefore it is recommended that the companies should voluntarily disclose such information and professional accounting bodies at international level should mane uniform and standard process for disclosure of IC information.