Title: Intellectual capital indicators influencing investment decision

Authors: Norman Mohd Saleh; Mohamat Sabri Hassan

Addresses: School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia ' School of Accounting, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia

Abstract: Intellectual capital (IC) information provides indication about the company future potential. Investors need to know IC information such as innovation effort made by the company, the quality of human capital within the company and the satisfaction level of their customer, in order to make investment decisions. This study examines the perception of unit trust fund managers on the extent to which information on IC is used in their investment decisions. This study also compares the impact of investor's experience and the type of institutions (i.e., public or private) on the perception of fund managers on IC indicators. The result shows that the importance of some IC indicators to investment decisions made by fund managers varies according to investor's experience. Their views also depend on whether the fund is private or managed by entities influenced by the government.

Keywords: intellectual capital indicators; investment decisions; financial accounting; investor experience; private investors; public investors; innovation; human capital; customer satisfaction; unit trust funds; fund managers.

DOI: 10.1504/IJLIC.2013.052952

International Journal of Learning and Intellectual Capital, 2013 Vol.10 No.2, pp.183 - 211

Published online: 29 Jan 2014 *

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