The transformation of intellectual capital disclosures: exploring the online intellectual capital disclosure by Hong Kong universities

Purpose The purpose of this exploratory paper is threefold: first to understand the practices of online intellectual capital (IC) disclosure and to identify potential drivers and consequences of such disclosure; second, to evaluate the influence of stakeholders’ perceptions; and third to strengthen the dialogue on accounting for intangibles and disclosure. Design/methodology/approach This study adopts a content analysis and a questionnaire survey. The content analysis is adopted to examine the online IC disclosure practices of eight publicly financed Hong Kong universities. The questionnaire survey is used to collect the views of university stakeholders. The IC disclosure quality is then correlated with the information needs of university stakeholders and university rankings, respectively. Findings Hong Kong universities strategically use online IC disclosures to align with the expectations of salient stakeholders, primarily influenced by external benefits. These universities selectively disclose IC information, prioritizing disclosures that enhance their operational success and competitive standing, while intentionally limiting disclosures on aspects less valued by salient stakeholders. Practical implications This research will be of interest to university administrators, policymakers and regulators and other stakeholder groups of universities. The findings of this study stimulate the debate on how universities report their stories on their IC to stakeholders via their institutional websites. Originality/value This study is exploratory and, to the best of the authors’ knowledge, is the first study to assess the online IC disclosure practices by Hong Kong universities as well as the first to provide evidence on how universities strategically use online IC disclosures. This study supports and extends the managerial branch of stakeholder theory.