ABSTRACT
This chapter addresses the disclosure of intellectual capital (IC). It aims to identify the few stages in the development of IC research in terms of IC disclosure. IC refers to intangible resources that create corporate value. IC is embedded within a spectrum of corporate activities, and has been generally categorized into human, structural, and relational capital. Under contemporary international financial reporting regulations, many IC elements are not recognized in the financial statements, and are historically not subject to extensive mandatory narrative reporting requirements. Prior studies have extensively investigated the extent and nature of IC disclosure in corporate annual reports. IC questionnaire survey evidence referred to in this chapter comes from 93 finance directors, 55 from companies listed on the London Stock Exchange main market and 38 from large companies listed on the Alternative Investment Market (AIM) market. Certain companies were driven by the reputational benefits of IC disclosure in terms of responding to perceived unethical corporate behaviour.
