Literature Review Comparative Analysis of Information Disclosure of Intellectual Capital in the Uk and China

In: Business and Management

Submitted By xuayo
Words 2711
Pages 11
1 Introduction
The primary purpose of this essay is to comparatively analyze information disclosure of intellectual capital in the UK and China, using the content analysis method on company annual reports. In contemporary society, the importance of intellectual capital (IC) and the popularity of using IC to value a company’s competitiveness have been increasing. The definition offered by the Chartered Institute of Management Accountants (2001) is probably one of the most comprehensive definitions: “…the possession of knowledge and experience, professional knowledge and skill, good relationships and technological capacities, which when applied will give organizations competitive advantage.” Predicting a company’s future market performance is one of the key functions of IC information disclosure (Roslender and Fincham, 2004). Consequently, IC will have a significant role in the future value creation process.

This study has some limitations, such as the small sample number, which has implications for how representative the data are. Ten companies in the respective stock markets were selected in the UK and China (total twenty) and content analysis was performed. A larger sample would have made the calculations too complex for the time available. The following paper reports the results of empirical research indicating that the trend of IC information disclosure is steadily increasing in both China and the UK, indicating that British companies had a better approach than Chinese companies to disclose IC. The study has identified common ground while preserving differences to obtain an advanced and suitable method of disclosing IC information. The essay will firstly define IC in detail. Secondly, it will illustrate the research objects and methodology. Thirdly, it will analyze the results…...

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