عنوان انگلیسی مقاله:

The Role of Audit Committee Attributes in Intellectual Capital Disclosures: Evidence from Malaysia

ترجمه عنوان مقاله: نقش ویژگی های کمیته حسابرسی در افشاگری های طرمایه فکری: شواهدی از مالزی

رشته: مالی و حسابداری

سال انتشار: 2015

تعداد صفحات مقاله انگلیسی: 17 صفحه

منبع: Emerald

نوع فایل: pdf

دانلود دانلود اصل مقاله

چکیده مقاله

Purpose: This study aims to examine the role of audit committee attributes in non-financial information releases, with a focus on intellectual capital (IC) disclosures, following significant policy changes, mandating the audit committee function in Malaysia. The study argues that, given the changing informational needs of stakeholders and the ongoing discussion on integrated reporting, the role of the audit committee should extend to ensuring the overall quality of corporate reporting.

Design/methodology/approach: The study draws evidence from a sample of leading Malaysian companies based on their market capitalisation over a three-year period (2008-2010), a period subsequent to the recent policy changes. The extent and quality of IC information, as a surrogate of non-financial information, was measured and regressed against several audit committee attributes, such as audit committee size, independence, financial expertise and meetings, controlling the overall governance and firm-specific variables.

Findings: The findings show a strong positive role of the audit committee function in the overall amount of IC information as well as all three subcomponents of IC information (internal, external and human capital). The results are robust to controls for the overall governance and firm-specific attributes as well as different measures of IC information.

Practical implications: The results suggest that the role of the audit committee function extends to non-financial information communication such as IC. Policymakers in Malaysia should, therefore, build on the recent regulatory changes and encourage audit committees to ensure that the overall quality of corporate reporting processes include social, environmental, intellectual as well as financial capital of a firm.

Originality/value: This study considers the role of the audit committee in the wider corporate reporting process – drawing attention to its potential role in the espoused integrated business reporting. It also challenges the taken-for-granted assumption that restricts the role of the audit committee function to the traditional financial reporting process.

Keywords: Malaysia, Integrated reporting, Intellectual capital, Audit committee, Regulatory changes

مقدمه مقاله

Research on corporate reporting has raised concerns over the usefulness of traditional financial statements to users for decision-making purposes (Francis and Schipper, 1999; Amir and Lev, 1996; Gray, 2006; Liu and Wang, 2012). Financial statements alone provide, at best, incomplete information, and have been heavily criticized for their historical orientation (Gray, 2006). This has led to a demand for an alternative corporate reporting framework that can blend financial and non-financial information. More recently, ‘integrated reporting’ is being increasingly embraced to balance various forms of information of a company (Adams and Simnett, 2011; Arvidsson,2011; Abeysekera, 2013). The on-going discussion on wider organisational reporting, instituted by the International Integrated Reporting Council (IIRC), places emphasis on a comprehensive reporting framework that integrates social capital, environmental issues and intellectual capital of a firm, with a view to connect an organisation’s vision, values, social, environmental and intellectual capital to its financial capital (Abeysekera, 2013, IIRC, 2013). In this regard,intellectual capital (IC) information has been cited as one of the most important non-financial information items to be included in the corporate reporting domains (Guthrie and Petty, 2000; Abeysekera, 2013). The underlying argument is IC resources represent a substantial amount of afirm’s market value in the modern economy (Edvinsson, 2013), and therefore disclosure of IC information reveals “the ‘true’ value of a firm by identifying new or hidden relations between various forms of assets” (Liu and Wang, 2012, p. 37).

http://modir3-3.ir/images/%D8%B3%D9%81%D8%A7%D8%B1%D8%B4%20%D8%AA%D8%B1%D8%AC%D9%85%D9%87%20%D9%BE%D8%A7%DB%8C%D8%A7%D9%86%20%D9%86%D8%A7%D9%85%D9%87.png