Intellectual Capital Disclosure: Empirical Evidence of Ownership Structure, Firm Size, and Business Risk

Disclosure of intellectual capital plays a very important role in providing information needed by related parties in the business decision-making process. This study aims to empirically test the factors that influence intellectual capital disclosure. These factors include ownership structure, consisting of institutional ownership, managerial ownership, and government ownership, as well as business risk and company size. The research sample was taken from state-owned companies listed on the IDX in the period 2018-2023. The results of the analysis using multiple linear regression show that institutional ownership and company size have a positive effect on intellectual capital disclosure. On the other hand, managerial ownership, government ownership, and business risk do not show any effect on intellectual capital disclosure. The findings of this study provide important implications for state-owned companies to pay more attention to institutional share ownership and business risk in decision making. Since managers may focus more on short-term interests and financial gains than on disclosing intellectual information. Governments may have different objectives such as economic stability or public policy, which do not necessarily support disclosure of intellectual property information. Companies with high business risks may be more cautious about sharing intellectual information so as not to reveal weaknesses or threats that competitors could rely on.