The Influence of Ethnicity on the Reporting of Intellectual Capital
Kesan Etnik ke atas Pelaporan Modal Intelek

Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

adibz@ukm.edu.my

Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

norman@ukm.edu.my

Department of Accounting
Kolej Matrikulasi Selangor
Mukim Jugra, 42700 Banting, Selangor, MALAYSIA.

sumayahmohamed@gmail.com

Abstract

In the 21st century, Intellectual Capital (IC), which comprised of human, structural and relational capitals, has become a source of predictors for future performance. The role of IC for future performance prediction surpasses traditional measures, such as physical and financial capital. This study investigates whether the ethnicity of directors, which include chief financial officers, chairman and audit committees, influences the amount of IC disclosure at the firm level. This study adopts a quantitative research approach, whereby level of IC disclosure is measured based upon the content analysis of corporate annual reports from 77 technology based companies in Malaysia. Malaysia is used as the setting for this study due to its ethnic diversity and the fact that the ethnic groups, to some extent, maintain their original cultural values. A ranked regression of normal scores is utilized to examine the relationship between the levels of IC disclosure and ethnicity. The study finds that a significant relationship exists between ethnicity of some directors and levels of IC disclosure.

Keywords

directors; ethnicity; financial reporting; intellectual capital

Citation

Hamzah, N., Mohd. Saleh, N., & Mohamed, S. (2015). The Influence of Ethnicity on the Reporting of Intellectual Capital. Jurnal Pengurusan, 43, 73–87.

@article{hamzah2015influence,
  title={The Influence of Ethnicity on the Reporting of Intellectual Capital},
  author={Hamzah, Noradiva and Mohd. Saleh, Norman and Mohamed, Sumayah},
  journal={Jurnal Pengurusan},
 

volume={43},
  number={},
  pages={73—87},
  year={2015},
  doi={},
  publisher={Penerbit UKM},
}

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43 (2015) 73 – 87

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