Intellectual Capital Disclosure Practices by Chemical and Pharmaceutical Companies in Bangladesh

Abstract

In today’s world, investors are likely to go in depth into a company’s financial details before investing. So discloser of information is very important for investors. Intellectual Capital Discloser is a complex one, which is the difference between a firm’s market value and the cost of replacing its assets. In this paper, we try to focus on how good the companies of Chemical and Pharmaceutical industry are, in Bangladesh, in Intellectual Capital Discloser. This paper considers human capital, structural capital and external (customer) capital as components of Intellectual capital and uses secondary data (Annual Reports) to analyse the discloser. Content analysis is used as the method of analysing the annual report. We have found that in an emerging economy like Bangladesh, the Chemical and Pharmaceutical industry performs moderately well in case of disclosing the Intellectual Capital components.

Keywords: Intellectual Capital; Chemical and Pharmaceutical Industry

Australian Academy of Accounting and Finance Review, vol 2, issue 2, April 2016, page 91-118