Original Research Article

Firm characteristics and intellectual capital disclosure on service companies listed in Indonesia stock exchange period 2008-2012

Kencana Dewi, *Mukhtaruddin Young and Ria Sundari

Accounting Department, Economics Faculty, Sriwijaya University, Jl. Raya Inderalaya, km. 32 Inderalaya 30662, Ogan Ilir Sumatera Selatan Indonesia

*Corresponding Author’s E-mail: yuditz@yahoo.com

Accepted October 08, 2014

Abstract

Intellectual capital disclosure is a report issued by company that is aimed to show value of company in order to sustain competitive advantage. This study analyzes the effect of firm characteristics on company's intellectual capital disclosure. Independent variables used in this study are firm size, firm age, industry type, listing status and managerial ownership and the dependent variable is intellectual capital disclosure. The data used are secondary data from Indonesia Stock Exchange i.e. annual report of services companies listed in Indonesia Stock Exchange period 2008-2012. Sample is selected by purposive sampling technique Among 226 service companies listed in Indonesia Stock Exchange period 2008-2012, there are 146 service companies meet the criteria. In analyzing data, multiple linear regressions with dummy variable are used. The result of analysis shows that firm size, firm age, and listing status affect intellectual capital disclosure significantly. While the type of industry and managerial ownership does not affect intellectual capital disclosure significantly. The limitations of this research are independent variable that is limited to firm characteristics without involving external factors of firm and assessment of intellectual capital disclosure is subjective because using content analysis in providing the code on each item of intellectual capital disclosed.

Keywords: Company Age, Company Size, Intellectual Capital Disclosures, Listing Status, Managerial Ownership, Type of Industry