Role of Intellectual Capital Disclosure on Firm value in the context of Integrated Reporting Adoption: An Empirical Analysis in the Indian Context

Abstract: This paper aims to examine the impact of Intellectual Capital Disclosure on firm value in the context of integrated reporting adoption. The content analysis approach has been used to measure intellectual capital disclosure. The panel data regression has been applied to identify the impact of IC disclosure on firm value from top listed companies based on its market capitalization. The results show that relational capital is value relevant, though overall IC disclosure shows a coefficient as expected, but failed to establish a significant relationship. In the additional analysis by trimming the period for two years, giving importance to integrated reporting adoption, the results reveal that IC disclosure and its sub-categories are more value relevant in the context of integrated reporting adoption. This study extends the literature on intellectual capital disclosure and firm value. Further, the study provided empirical evidence for the role of integrated reporting in the relationship of IC disclosure with firms’ market value. As the contribution, this study extends the literature by identifying empirical evidence about the role of IC information on firm value in the context of integrated reporting adoption from a developing market, where economic, social, political, and cultural conditions will be different. Keywords: Intellectual Capital Disclosure, Firm Value, India