Impact of Intellectual Capital Reporting in the Annual Report on Firm Performance:
Empirical Evidence from Listed Pharmaceuticals Companies of Bangladesh
Md Masukor Rahaman
This paper examines the impact of intellectual capital reporting in the annual reports of Pharmaceuticals company listed at Dhaka Stock Exchange on their performance. This paper uses sample of 31 pharmaceuticals company for the period 2016-2017. To measure the extent of IC disclosure on the annual report a disclosure index (ICDSI) is developed. Information related to firm performance is obtained from annual report. Correlation and regression analysis have been used for data analysis. This paper found positive relation of IC disclosure with two performance measure (ROE and ROA) but negative relation with EPS. However, relationship is not significant. The impact of control variables on firm performance is also mixed and narrow. The reason for limited association among the variables can be lower amount of disclosure, unrelated concept of firm performance and ICDSI. The mean disclosure is only 23%. Overall findings of the paper suggest company disclose human capital information mostly. Further study may include longitudinal study with more sample size and control variable. This study will help academics who want to work in IC literature. Manager of Pharmaceutical will get to know which IC information reporting will give them organizational benefit. Regulator can get useful insights from this paper to formulate and implement IC related guideline. This paper is one the very first paper in Bangladesh to investigate IC disclosures impact on firm performance through developing ICDSI index.
Keywords: Intellectual Capital, Annual Report, Firm Performance, Dhaka Stock Exchange, ICDSI.
|Title:||Impact of Intellectual Capital Reporting in the Annual Report on Firm Performance: Empirical Evidence from Listed Pharmaceuticals Companies of Bangladesh|
|Author:||Md Masukor Rahaman|
|Journal Name:||International Journal of Science and Business|
|ISSN:||ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)|
|Date of Publication:||12/08/2020|
|Paper Type:||Research Paper|
Cite This Article:
Md Masukor Rahaman (2020). Impact of Intellectual Capital Reporting in the Annual Report on Firm Performance: Empirical Evidence from Listed Pharmaceuticals Companies of Bangladesh. International Journal of Science and Business, 4(9), 60-78. doi: https://doi.org/ 10.5281/zenodo.3980888
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About Author (s)
Md Masukor Rahaman, Post graduate student, Department of Accounting & information Systems, University of Dhaka, Dhaka-1000, Bangladesh.