Sri Lankan intellectual capital disclosure: An empirical analysis

Pratheepkanth Puwanenthiren, Alagathurai Aj anthan, Lingesiya Kengatharan


This study examines voluntary IC disclosure provided by Sri Lankan firms in annual reports from the year 2016/17. A 100-firms sample, from the Colombo stock exchange (CSE)-listed firms. Findings suggest that Sri Lankan firms, on average, are aware of the significance of IC disclosure. Concerning the descriptive analysis, the results indicate that most of the information reported (41 percent) is related to human capital; 31 percent is related to relational capital and the 21 percent concerns structural capital disclosure.  The results also suggest that industry nature and firm size play a key role as a determinant for the disclosure of IC in Sri Lankan annual reports. As the no definite IC disclosure framework has been established within Sri Lankan firms. Concurrently as Sri Lanka passes through its post-war-recovery phase, reform of its mutually agreed financial reporting framework is essential to reduces information asymmetry and therefore reducing the agency costs.


Intellectual capital, disclosure, financial reporting, Sri Lanka

Full Text:


Article Metrics

Abstract views : 409| PDF views : 0


Abeysekera, I., & Guthrie, J. (2005). An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka. Critical Perspectives on Accounting, 16(3), 151-163.

Aboody, D., & Lev, B. (2000). Information asymmetry, R&D, and insider gains. The Journal of Finance, 55(6), 2747-2766.

Aboody, D., & Lev, B. (2000). Information asymmetry, R&D, and insider gains. The Journal of Finance, 55(6), 2747-2766.

Ahmed, K., & Courtis, J. (1999). Associations between corporate characteristics and disclosure levels in annual reports: a meta-analysis. The British Accounting Review, 31(1), 35-61.

April, K., Bosma, P., & Deglon, D. (2003). IC measurement and reporting: establishing a practice in SA mining. Journal of Intellectual Capital, 4(2), 165-180.

Barth, M., Kasznik, R., & McNichols, M. (2001). Analyst coverage and intangible assets. Journal of Accounting Research, 39(1), 1-34.

Beattie, V., & Thomson, S. (.-1. (2007). Lifting the lid on the use of content analysis to investigate intellectual capital disclosures. Accounting Forum, 31(2), 129-163.

Beaulieu, P., Williams, S., & Wright, M. (2002). Intellectual capital disclosures in Swedish annual reports. In N. Bontis, World congress on intellectual capital readings (pp. 135-156). Oxford: Butterworth-Heinemann.

Bollen, L., Vergauwen, P., & Schnieders, S. (2005). Linking intellectual capital and intellectual property to company performance. Management Decision, 9, 1161-85.

Bontis, N. (2003). Intellectual capital disclosure in Canadian corporations. International Journal of Managment Reviews, 7(1), 9-20.

Boone, J., & Raman, K. (2001). Off-balance sheet R&D assets and market liquidity. Journal of Accounting and Public Policy,, 20(2), 97-128.

Bozzolan, S., Favotto, F., & Ricceri, F. (2003). Italian annual intellectual capital disclosure: An empirical analysis. Journal of Intellectual capital, 4(4), 543-558.

Bozzolan, S., O'Regan, P., & Ricceri, F. (2006). Intellectual capital disclosure (ICD) A comparison of Italy and the UK. Journal of Human Resource Costing & Accounting, 10(2), 92-113.

Brennan, N. (2001). Reporting intellectual capital in annual reports: evidence from Ireland. Accounting, Auditing & Accountability Journal, 14(4), 423-436.

Brüggen, A., Vergauwen, P., & Dao, M. (2009). Determinants of intellectual capital disclosure: evidence from Australia. Management Decision, 47(2), 233-245.

Bukh, P., Nielsen, C., Gormsen, P., & Mouritsen, J. (2005). Disclosure of information on intellectual capital in Danish IPO prospectuses. Accounting, Auditing & Accountability Journal, 18(6), 713-732.

Chaminade, C., & Roberts, H. (2003). What it means is what it does: a comparative analysis of implementing intellectual capital in Norway and Spain. European Accounting Review, 12(4), 733-751.

Fama, E., & Jensen, M. J. (1983). Separation of Ownership and Control. Journal of Law & Economics, 26(2), 301-325.

Francis, J., & Schipper, K. (1999). Have financial statements lost their relevance? Journal of Accounting Research, 37(2), 319-352.

García-Meca, E., & Martínez, I. (2007). The use of intellectual capital information in investment decisions: An empirical study using analyst reports. The International Journal of Accounting, 42(1), 57-81.

Goh, P., & Pheng, K. (2004). Disclosing intellectual capital in company annual reports: evidence from Malaysia. Journal of Intellectual Capital, 5(3), 500-510.

Gray, R. (2002). The social accounting project and accounting orgnaisation and society - privileging engagement imaginings, new accountings and pragmatism over critique? Accounting, Organisation and Society, 27, 687-708.

Guthrie, J., & Petty, R. (2000). Intellectual capital: Australian annual reporting practices. Journal of Intellectual Capital, 1(3), 241-251.

Healy, P., & Palepu, K. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405-440.

Holland, J. (2003). Intellectual capital and the capital market - organisation and competence. Accounting, Auditing & Accountability Journal, 16(1), 39-48.

Holland, J. (2006). Fund management, intellectual capital, intangibles and private disclosure. Managerial Finance, 32(4), 277-316.

Karamanou, I., & Vafeas, N. (2005). The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis. Journal of Accounting Research, 43(3), 453-486.

Lambert, R. (1998). Customer satisfaction and future financial performance discussion of are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction. Journal of Accounting Research, 36(1), 37-46.

Mathews, M. (1997). Twenty-five years of social and environmental accounting research: is there a silver jubilee to celebrate? Accounting, Auditing & Accountability Journal, 10(4), 481-531.

Meca, E., Jorge, M., & Conesa, I. (2003). Intellectual capital disclosure to financial analysts, explanatory factors. 26th annual conference of the European Accounting Association. Seville.

Mouritsen, J., Larsen, H., & Bukh, P. (2001). Intellectual capital and the ‘capable firm’: narrating, visualising and numbering for managing knowledge. Accounting, Organizations and Society, 26(7-8), 735-762.

Olsson, B. (2004). Intellectual capital disclosure through annual reports: a study of the Swedish retail industry. Journal of Human Resource Costing & Accounting, 2, 57-72.

Orens, R., & Lybaert, N. (2007). Does the financial analysts' usage of non-financial information influence the analysts' forecast accuracy? Some evidence from the Belgian sell-side financial analyst. The International Journal of Accounting, 42(3), 237-271.

Sveiby, K. (1997). The new organisational wealth: managing and measuring knowledge-based assets. San Francisco, CA: Berrett-Koehler.

Vanstraelen, A., Zarzeski, M., & Robb, S. (2003). Corporate nonfinancial disclosure practices and financial analyst forecast ability across three European countries. Journal of International Financial Management & Accounting, 14(3), 249-278.

Williams, S. (2001). Are intellectual capital performance and disclosure practice related? Journal of Intellectual Capital, 2(3), 192-203.



  • There are currently no refbacks.

Copyright (c) 2019 Indonesian Management and Accounting Research

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.



Indonesian Management and Accounting Research
ISSN : 2442-9724 Online
ISSN : 1411-8858 Print

Published by
Lembaga Penerbit Fakultas Ekonomi dan Bisnis, Universitas Trisakti
(Faculty of Economics and Business, Trisakti University)
Gedung Hendriawan Sie, 3rd floor
Jalan Kyai Tapa No.1, Grogol
Jakarta Barat, Indonesia
Post Code : 11440




Indonesian Management and Accounting Research Indexed by:





Creative Commons License
Indonesian Management and Accounting Research 
is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.