Abstract:

The purpose of this study is to examine empirically the association of intellectual capital disclosure (the overall, internal capital, external capital, and human capital disclosure) with firm value of high and non-high technology based companies in Malaysia. Past studies provide evidence that the positive relationship between intellectual capital disclosure and firm value may be influenced by types of industry. Due to the nature of high technology firms with a higher volume of intellectual capital as compared to non-high technology firms, the former are expected to disclose more on their intellectual capital. They are also expected to be undervalued in the case of no such disclosure made. The sample for this study consists of 233 firms listed on the Main Board of Bursa Malaysia on 31 December 2007. A positive and significant relationship between the level of intellectual capital disclosure and firm value was found. However, the type of industry is found to have no significant impact on the relationship. This suggests that both industries, high and non-high technology based, will benefit equally from the disclosure of their intellectual capital.