Monitoring mechanisms and intellectual capital disclosure among banks in the GCC

• Main Authors: Ishak, Zuaini, Al-Ebel, Abood Mohammad
• Format: Article
• Language: English
• Published: Allied Business Academies 2018
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/27371/1/aafsj%2022%201%202018.pdf; http://repo.uum.edu.my/27371/; https://search.proquest.com/openview/9f44c1076304ea6783b0e38d1177ef65/1?pq-origsite=gscholar&cbl=29414

The purpose of this paper is to examine the relationship between monitoring mechanisms namely, board and audit committee effectiveness, foreign and domestic institutional ownership and competition with voluntary disclosure of intellectual capital (IC) among listed banks in the Gulf Co-Operation Council (GCC) region. The content analysis was used to analyse IC disclosures of 137 listed GCC banks. A regression model is utilized to analyze the data. The results suggest that the monitoring mechanisms have significant relationship with the quantity of IC information disclosed. The findings contribute to support agency theory by indicating that corporate governance mechanisms and corporate voluntary disclosure can be used strategically by considering the mechanisms as a bundle since they work complimentary to reduce agency conflicts. In addition, the finding also suggests that foreign institutional ownership have more monitoring capacities than domestic institutional investors in relation to IC disclosure.