Impact of firm performance and corporate governance mechanisms on intellectual capital disclosures in CEO statements
Journal of Intellectual Capital
ISSN: 1469-1930
Article publication date: 1 September 2020
Issue publication date: 8 February 2022
Abstract
Purpose
Using agency theory and impression management theory, this study examines the impact of financial performance (FP) and corporate governance (CG) mechanisms on the extent of intellectual capital disclosures (ICDs) and the three components within the CEO statement – human capital (HC), structural capital (SC) and relational capital (RC).
Design/methodology/approach
This study employs a sample of non-financial SPF-120 French listed firms to capture the relevant variables; it collects data for 2010–2017, using a panel data technique to run the random effects regressions.
Findings
The study finds that FP, measured using both market (Tobin's q) and accounting (return on equity and return on assets) indicators, plays a vital role in the extent of ICDs and the three components in the CEO statement published by SPF-120 companies. This confirms its impact on the decision-making needs of stakeholders. Among the CG mechanisms, this study finds that cultural diversity and gender diversity affect some ICD components. Moreover, CEO characteristics such as age, education and role duality affect ICD, while institutional ownership drives the extent of such disclosures.
Practical implications
Our findings have comprehensive implications for managers of French listed firms, the Autorité des Marchés Financiers, and stakeholders in general.
Originality/value
This study provides significant insights by investigating the impact of FP, CG and company characteristics on the extent of the ICDs published in CEO statements.
Keywords
Citation
Mardini, G.H. and Lahyani, F.E. (2022), "Impact of firm performance and corporate governance mechanisms on intellectual capital disclosures in CEO statements", Journal of Intellectual Capital, Vol. 23 No. 2, pp. 290-312. https://doi.org/10.1108/JIC-02-2020-0053
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited