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Do board size and non-executive directors affect intellectual capital disclosure? Sri Lankan banking industry

Authors:

A. Ajanthan ,

University of Jaffna, LK
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S. Ramesh

University of Jaffna, LK
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Abstract

Investment on intangibles has been widely accepted as key resource in creating value and competitive advantage for firms. This study therefore examines the relationship between board size, independent non-executive directors and voluntary disclosures of intangibles for a sample of Sri Lankan banks from 2017 to 2019. Intellectual capital disclosure is measured by a disclosure index score, supported by word count of intellectual capital disclosure. Board size and independent non-executive directors are explanatory variables of the study. Results of the analysis indicate significant positive relationship between independent and dependent variables. Further, adjusted R2 says that approximately 56% of influences on disclosures of intangibles are made by board size and independent non-executive directors which is significant at 95% confident level (f=13.31; p<0.001). The results of this study may be useful for policy makers, government agencies, regulatory bodies as well as management of the firms to make better understanding about the importance and necessity of having mandatory requirement of corporate governance and disclosures of intangibles.
How to Cite: Ajanthan, A. and Ramesh, S., 2021. Do board size and non-executive directors affect intellectual capital disclosure? Sri Lankan banking industry. International Journal of Accounting and Business Finance, 7(2), pp.116–130. DOI: http://doi.org/10.4038/ijabf.v7i2.98
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Published on 30 Dec 2021.
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