Does board gender diversity influence voluntary disclosure of intellectual capital in initial public offering prospectuses? Evidence from China

Research question/issue Using a multitheoretic view of boards, this study examines the impact of boardroom gender diversity (BGD) on voluntary intellectual capital (IC) disclosure in initial public offering (IPO) prospectuses in China-the world's second-biggest economy, which is moving from a planned economy to a market-oriented one. Furthermore, this study also investigates the impact of family ownership on the relationship between BGD and IC disclosure in the Chinese environment, which is characterized by less-developed corporate governance mechanisms. Research findings/insights Based on a comprehensive content analysis of Chinese IPO prospectuses between 2009 and 2017 and measuring disclosure index at 78 dimensions under six broad categories of IC, the empirical results document (a) a significant positive relation between BGD and IC disclosure-in line with resource dependence theory, (b) a significant negative impact of female independent directors on IC disclosure-opposite to agency theory predictions, and that (c) the BGD-IC disclosure relationship is generally stronger for firms with two or more women on boards-in line with critical mass theory in China. Finally, this study also reveals that family ownership has adverse impacts on the BGD-IC disclosure relationship. These results are robust to a battery of sensitivity analyses. Practitioner/policy implications This study provides positive capital market implications of BGD through enhanced IC disclosure in IPO prospectuses. In doing so, the study has important implications for regulators and top management teams in devising policies concerning female representation on boards and voluntary disclosure of IC to inform the market participants of the true value of the company.