The Moderating Role of Political Connections in the Relationship Between Board Characteristics and Intellectual Capital Disclosure

DOI

10.2991/aebmr.k.211207.039How to use a DOI?

Keywords

Corporate governance; Board characteristics; Political connections; Intellectual capital disclosure

Abstract

In light of the modern knowledge-based economy, companies have become increasingly dependent on intellectual capital. Companies have increased their dependence on intangible assets and changed the structure of their traditional assets. The traditional accounting standards and financial statements failed to provide non-financial data to users such as stakeholders, investors and creditors. This has encouraged researchers in developed countries to focus on intellectual capital disclosure as the traditional financial statements and accounting standards do not address intellectual capital. Previous studies have adopted the descriptive approach in studying intellectual capital disclosure. Few studies have investigated the impact of board characteristics on intellectual capital disclosure in developing countries. In addition, these few studies have found mixed results about the relationship between board characteristics and intellectual capital disclosure. Politics play an important role, especially in developing countries; it affects the economic environment. Companies consider political connections an important external source that can be relied upon to reduce capital costs and effect voluntary disclosure. This study provides a new contribution to the literature as it departs from the mainstream of previous literature, which focuses mainly on the direct relationship between board characteristics and intellectual capital disclosure. Accordingly, the purpose of this study is to create the foundation for a theoretical framework based on Agency theory and Resource Dependence theory to the moderating effect of political connection on the relationship between board characteristics and intellectual capital disclosure in developing countries.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Belal Zidan Rimawi
AU  - Wan Fadzilah Wan Yusoff
AU  - Abu Sofian Yaacob
PY  - 2021
DA  - 2021/12/07
TI  - The Moderating Role of Political Connections in the Relationship Between Board Characteristics and Intellectual Capital Disclosure
BT  - Proceedings of the Conference Towards ASEAN Chairmanship 2023 (T-A-C 23 2021)
PB  - Atlantis Press
SP  - 251
EP  - 256
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211207.039
DO  - 10.2991/aebmr.k.211207.039
ID  - Rimawi2021
ER  -