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Corporate governance and intellectual capital reporting in a period of financial crisis: evidence from Portugal

Research output: Contribution to journalArticle

  • Lúcia Lima Rodrigues
  • Francisca ​Tejedo-Romero
  • Russell Craig
This article uses an analytical frame that comprised agency theory and a resource-based perspective to explore the influence of boards of directors on listed companies’ voluntary disclosure of information concerning intellectual capital (IC). The IC disclosures in 75 published company reports of 15 listed Portuguese companies in a 5 year period of financial crisis, 2007–2011, are investigated using content analysis and the regression techniques. IC disclosures are found to increase with company size, dual corporate governance models, industry, listing on sustainability indexes and increases in board size up to a maximum point (beyond which disclosures decrease). IC disclosures are reduced by CEO duality and by a higher proportion of independent directors on boards. The year of reporting is not significant, suggesting that the period of financial crisis did not influence the level of IC disclosures. The evidence adduced is consistent with a view that highly visible companies acknowledge the importance of IC disclosures in maintaining their reputation and competitive advantage, even during a period of financial crisis. This article highlights the need for caution in believing that adding extra directors to an existing board will lead to improved disclosure outcomes. In addition, given the token number of females appointed to boards currently, the Portuguese capital market regulator should consider enforcing measures to ensure compliance with EU objectives.
Original languageEnglish
Pages (from-to)1-29
Number of pages29
JournalInternational Journal of Disclosure and Governance
Volume14
Issue number1
Early online date21 Dec 2016
DOIs
Publication statusPublished - Feb 2017

Documents

  • CRAIG_2017_cright_IJDG_Corporate governance and intellectual capital reporting in a period of financial crisis

    Rights statement: This is a post-peer-review, pre-copyedit version of an article published in International Journal of Disclosure and Governance. The definitive publisher-authenticated version "​Corporate Governance and Intellectual Capital Reporting in a Period of Financial Crisis: Evidence from Portugal", (2016), 14(1), DOI: ​10.1057/jdg.2015.20, is available online at: http://www.springer.com/business+%26+management/journal/41310

    Accepted author manuscript (Post-print), 898 KB, PDF document

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