An analysis of intellectual capital disclosure by Portuguese companies

Purpose - The purpose of this paper is to analyse annual reports as media of intellectual capital disclosure (ICD) by Portuguese listed companies and to evaluate size, industry and time effects on disclosure as well as the effects of ICD on the growth of a company. Design/methodology/approach - The paper examines ICD in 2004, 2006 and 2008 annual reports using content analysis. Non-parametric statistical methods are used to test size and industry effects on disclosure, the effects of the level of disclosure on the growth of a company and to determine the significance of the differences in disclosure between the years under analysis. Findings - The analysis showed that size is significant in explaining ICD. The results also indicated that industrial affiliation is only partially a factor explaining ICD. It was not possible to confirm neither an increase in ICD over time, nor the relationship between ICD and growth. Research limitations/implications - The sample is small. There may be content analysis issues associated with subjectivity in the coding process and the use of a limited content analysis method. Originality/value - This paper adds to the scarce research on ICD by Portuguese companies by providing new empirical data.