Academic journal article IUP Journal of Corporate Governance

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Academic journal article IUP Journal of Corporate Governance

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Article excerpt

Traditionally, corporate governance and disclosure practices of firms are associated with variables such as board size, board independence, board committees, ownership concentration, cross-listing of firms, CEO duality, auditor selection, and firm characteristics (like size, age, leverage, nature of industry, origin and types of firms, viz., institutional ownership, family ownership, managerial ownership and government ownership). In this context, the present issue specifically focuses on the firm-specific drivers of corporate governance such as structure-related variable (i.e., institutional ownership) and market-related variable (i.e., industry nature and type).

The first paper, "Corporate Governance and Disclosure Practices of Firms: The Impact of Nature and Types of Intellectual Capital", by Pankaj M Madhani, examines the relationship between the nature and types of Intellectual Capital (IC) and corporate governance and disclosure practices of firms. IC refers to and includes relatively intangible and/or hidden assets of enterprises that are or can be leveraged to create value for the stakeholders of the organizations. To date, the growing economic relevance of intangibles has hardly been reflected in mandatory rules accepted by international reporting standards. Hence, quite a number of firms voluntarily publish information on their intangible asset stocks. However, there is not much research on IC asset types and its influence on corporate governance and disclosure practices of firms. The first paper focuses on this topic.

The sample firms selected for this research represent different sectors of IC intensive firms listed on Bombay Stock Exchange (BSE). These firms are further segregated according to types of IC, viz., human capital, structural capital and relational capital. This research calculates IC intensity ratio for sample firms, and studies the relation between IC and corporate governance and disclosure practices. The paper analyzes the key characteristics of IC intensive industries of sample firms and investigates the impact of nature of industry in terms of IC intensity and types on corporate governance and disclosure practices. The research finds no statistically significant difference in the corporate governance and disclosure score of firms across various IC intensive sectors segregated according to types of IC and provided reasons thereof. …

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