This paper aims to investigate preparers' and users' perceptions on the usefulness of intellectual capital (IC) information disclosed in annual reports of listed companies. In addition, it aims to examine the significant differences in the perceptions of usefulness of IC information and IC categories of the preparers and users.
The paper used a questionnaire survey method to collect the data (i.e. primary data). The questionnaires were distributed to companies (i.e. chief financial officers and accountants) as preparers, and brokers (i.e. analysts) and banks (i.e. credit officers) as users. The data were analysed using descriptive statistics, t‐test and ANOVA.
The paper found that both preparers and users perceive the IC information disclosed in the annual reports of listed companies to be useful for their decision making purposes. Furthermore, the paper found that there are significant differences in the perception of usefulness between preparers and users.
The paper only focused on certain preparers' and users' perceptions. Nevertheless, it provides evidence that IC information is useful for decision‐making purposes. Future research on this issue may include more users.
The findings provide evidence that IC information disclosed by listed companies is perceived to be useful by preparers and users. In addition, it provides evidence that there is significant difference between the perceptions of the usefulness of IC information by preparers, users and amongst the different user groups. Thus, these findings could be useful for regulatory authorities in Malaysia (e.g. Malaysian Accounting Standards Board and Bursa Malaysia) for the improvement of the disclosure practices (e.g. voluntary basis) by the Malaysian listed companies and enhance transparency in the capital market.
The paper can be considered as the first empirical study to examine the usefulness of the IC information from both views; preparers and users in Malaysia. In addition it contributes to the limited literature on IC in Malaysia.
Ousama, A.A., Fatima, A.H. and Hafiz Majdi, A.R. (2011), "Usefulness of intellectual capital information: preparers' and users' views", Journal of Intellectual Capital, Vol. 12 No. 3, pp. 430-445. https://doi.org/10.1108/14691931111154724
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