Corporate governance mechanisms and intellectual capital

Tejedo-Romero, F., Araujo, J. F. F. E., & Emmendoerfer, M. L. (2017). Corporate governance mechanisms and intellectual capital. Revista Brasileira de Gestao de Negocios, 19(65), 394–414. https://doi.org/10.7819/rbgn.v19i65.3024This episode explores the corporate governance (CG) characteristics of Spanish companies listed on the Ibex35 that influence voluntary disclosure of Intellectual Capital (IC). Based on an analysis of 115 annual reports from 23 firms over five years, the study quantifies IC disclosures.Findings show that companies with higher IC disclosure tend to have greater managerial ownership, fewer independent directors, a separation of CEO and chairman roles, and larger boards. The study contributes to agency-stakeholder theory by examining a non-Anglo-Saxon market with strong executive power and weak minority shareholder protection.Using panel data econometrics and the Hausman-Taylor estimator to address endogeneity, the research finds that IC disclosure averages only 42%. Managerial ownership and role separation positively influence disclosure, while board independence has a negative impact. The study highlights CG’s role in corporate transparency and accountability, offering insights for regulators and firms following CG codes.