Title: An exploratory study on the usefulness of intellectual capital information
Authors: Abdulrahman Anam Ousama; Abdul Hamid Fatima; Abdul Rashid Hafiz-Majdi
Department of Accounting, Faculty of Commerce and Management Sciences, Ibb University, Ibb, Yemen.
Department of Accounting, Faculty of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia.
Department of Accounting, Faculty of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia
Abstract: Intellectual capital (IC) is considered as the intangible resources that help in value creation of the company. IC consists of three categories: internal capital (INC), external capital (EXC) and human capital (HUC). This paper aims to examine the academics' perception of the usefulness of IC information disclosed in the annual reports of Malaysian listed companies. The paper found that the respondents perceived IC information (i.e., overall) to be useful for the purpose of decision making. The findings also showed that the mean of the perception of the usefulness of EXC information is higher compared to the means of INC and HUC. In addition, the findings of the t-tests reveal that the perceptions of IC (i.e., overall), INC, EXC and HUC information are statistically significant. Moreover, the paired samples t-test confirmed the significant differences in the perception of usefulness between INC with EXC and EXC with HUC.
Keywords: intellectual capital; perceived usefulness; disclosure; perception; academics; Malaysia; value creation; annual reports; decision making; internal capital; external capital; human capital.
Int. J. of Accounting and Finance, 2011 Vol.3, No.2, pp.177 - 192
Submission date: 21 Apr 2011
Date of acceptance: 07 Sep 2011
Available online: 23 Nov 2011