An evaluation of intellectual capital disclosure: evidence from Vietnamese firms

Purpose This study aims to explore the extent of Intellectual Capital Disclosure (ICD) in the annual reports of the top 50 listed Vietnamese companies. It assesses the influence of firm characteristics and corporate governance structure on ICD practices. Design/methodology/approach ICD was measured using content analysis, specifically word count percentage. Panel data regression analysis was employed to examine the relationship between firm characteristics, governance structures and the level of ICD. Findings Results reveal that ICD levels among Vietnamese firms sampled are relatively low, averaging 17.43% of the overall annual report word count. Relational capital emerges as the most disclosed category of IC. Firm size, profitability, industry type, number of independent board members and CEO duality significantly impact the level of ICD. However, leverage, board size and the presence of an audit committee show no significant influence on ICD. Practical implications These findings offer insights into agency and signaling theories. They provide empirical evidence for stakeholders, academics and regulatory bodies to comprehend ICD practices and identify factors that could enhance ICD in emerging markets like Vietnam. Originality/value This study contributes to the literature by examining ICD practices in an emerging market context and identifying the impact of firm characteristics and governance structures on ICD levels, offering valuable implications for both theory and practice.