Open AccessThe Effect of Intellectual Capital Disclosure on the Value Creation: An Empirical Study Using Tunisian Annual Reports
Author(s) -
Jihene Ferchichi,
Robert Pierpoint
Publication year - 2013
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v3i1.3238
Subject(s) - intellectual capital , stock exchange , valuation (finance) , accounting , business , enterprise value , value (mathematics) , market value , capital market , order (exchange) , index (typography) , finance , machine learning , computer science , world wide web
This study examines the informational value of intellectual capital on Tunisian financial markets, which appears as a highly topical issue, especially with the broadening notion of the intellectual capital and its increasing role in investment decisions. Using content analysis of annual reports of 50 companies listed on the Tunisian Stock Exchange selected for the period 2006–2009, we developed a weighted disclosure index based on the users’ needs and expectations in order to estimate the relationship between intellectual capital disclosures and value creation.The results show that the intellectual capital information is positively and significantly correlated with the firm creation value. Reporting on intellectual capital allows resolving uncertainty about the firm, thereby improving an increase in value. This finding confirms the pivotal role of intellectual capital in the valuation of firms listed on the Tunisian Stock Exchange.