Does Intellectual Capital Disclosure Enhance Organization Governance? Evidence from Indonesian Biggest Organizations

摘要

The aim of this study is to get empirical evidence about the effect of intellectual capital disclosure (ICD) on cost of equity capital. The samples of this study are Indonesian public companies which included on the 50 biggest market capitalization on Indonesia Stock Exchange. Fourway numerical coding system was used to conduct content analysis in order to identify the intellectual capital disclosure practices based on companies’ annual report. Regression analysis under SPSS 21.0 was used to test the hypothesis. The results indicated that intellectual capitaldisclosure had no significant effect on cost of equity capital. On the other hand, leverage as control variable shows a significant role.