Towards a comprehensive theoretical framework for voluntary IC disclosure

Abstract

Purpose

This paper aims to construct a comprehensive theoretical framework for interpreting voluntary IC disclosure practices by organizations.

Design/methodology/approach

Four most‐commonly used theories in the area, namely agency theory, stakeholder theory, signalling theory, and legitimacy theory, were integrated in terms of the interrelated concepts relating to voluntary IC disclosure.

Findings

The constructed theoretical framework includes three concepts: to reduce information asymmetry; to discharge accountability to various stakeholders; and to signal organizational legitimacy and excellence (or superior quality) to society, which are seen as motivations for organizations to disclose their IC on a voluntary basis.

Research limitations/implications

The framework ignores some other theoretical perspectives which are also relevant to voluntary IC disclosure; the framework is not justified by any empirical evidence.

Originality/value

This research is the first attempt to construct a comprehensive theoretical framework for the voluntary disclosure of IC; the constructed framework can be employed as a theoretical foundation for future empirical studies in relation to voluntary IC disclosure.

Citation

An, Y., Davey, H. and Eggleton, I.R.C. (2011), "Towards a comprehensive theoretical framework for voluntary IC disclosure", Journal of Intellectual Capital, Vol. 12 No. 4, pp. 571-585. https://doi.org/10.1108/14691931111181733