The Influence of Corporate Governance and Company Characteristics on Intellectual Capital Disclosures

This study aimed to examine the effect of corporate governance and the characteristics of the company consisting of profitability, leverage, company size, and age of the company on disclosure of intellectual capital. This research used companies listed in Indonesia corporate governance forum and signed the application of corporate governance rankings conducted by the Indonesian Institute for Corporate Governance (IICG) during 2011–2014 as the population. Sampling technique was done by purposive sampling method which was obtained a sample of 66 companies with a total of as many as 136 observation data. Scores implementation of corporate governance (Corporate Governance perception index/CGPI) of each sample was used as a measurement of the company’s corporate governance variables. Measurement of intellectual capital disclosure used the index overall intellectual capital disclosures (Intellectual Capital Disclosure Index/ICDI) by using 61 items of intellectual capital developed by Li et al. Meanwhile, multiple regression analysis was used to test five hypotheses developed in this study. The results showed that leverage significantly and positively affects the disclosure of intellectual capital. Meanwhile, the variables of CGPI, profitability, firm size, and firm age do not affect the disclosure of intellectual capital. The results of this study have implications that companies with higher leverage level will reveal wider intellectual capital to reduce agency costs and asymmetry information between management and creditors.