Intellectual capital disclosure in the UK biotechnology IPO prospectuses
Journal of Human Resource Costing & Accounting
ISSN: 1401-338X
Article publication date: 30 March 2012
Abstract
Purpose
The purpose of this paper is to investigate the extent of intellectual capital (IC) disclosure on the UK biotechnology initial public offering (IPO) prospectuses. The study is based on companies going public on the London Stock Exchange (LSE) and the London Alternative Investment Market (AIM) over the period 2005‐2007.
Design/methodology/approach
The extent of IC disclosure is collected and measured by using the IC disclosure index and the framework proposed by Bukh et al. The differences in the level of IC disclosure are analysed by modelling some firm‐specific determinants such as size, maturity, age and independence of the board.
Findings
It is shown that primary listing companies on the LSE disclose more IC information than those on the London AIM. Maturity and independence of the board are associated with IC disclosure, while size and age are not related, showing the importance of corporate communication as a signal of credibility to possible investors at IPO stage.
Originality/value
The main contribution of the paper is to analyse IC disclosure in the UK biotechnology IPO prospectuses. Previous literature does not focus on this reporting genre as an important corporate communication tool, as most research investigates IC disclosure only in annual reports and country regulation settings.
Keywords
Citation
Cordazzo, M. and Vergauwen, P.G.M.C. (2012), "Intellectual capital disclosure in the UK biotechnology IPO prospectuses", Journal of Human Resource Costing & Accounting, Vol. 16 No. 1, pp. 4-19. https://doi.org/10.1108/14013381211272617
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited