PurposeThis study aims to investigate the factors influencing the disclosure of intellectual capital (IC) information in the Malaysian initial public offering (IPO) prospectus using multiple regression analysis.Design/methodology/approachThe sample consists of 130 companies in the technology and industrial products sectors of Bursa Malaysia that went through an IPO between 2004 and 2008. Initially, the extent of the IC disclosure index is quantified using content analysis methodology. The multiple regression analysis is then used to examine the associations of nine potential explanatory variables with IC disclosure level.FindingsIn general, the results provide evidence that board size, board independence, age, leverage, underwriter and listing board significantly influence the extent of IC disclosure in an IPO prospectus. Nonetheless, the effect of each explanatory variable may vary in each estimated parameter of the multiple regression models. Three variables, board diversity, size and auditor, were not significant.Originality/valueAlthough many studies have examined the content of and reasons for IC disclosures, this study provides empirical evidence in this specific area, i.e. to explore the determinants of IC disclosure, particularly from the perspective of IPO prospectuses, in emerging countries such as Malaysia.

Purpose -This study examines the intangible assets value of the Malaysian market. It measures the relationship between intangible assets and corporate market value of Malaysian firms and whether they are consistent with findings in other advanced markets. Design/methodology/approach -Firstly, the development of intangible assets of Malaysian companies over 2000 to 2006 were measured statistically using Landsman's balance sheet identity model. Then, cross-sectional multi-regression procedure was used to ascertain the relationship between intangible assets and financial performance. Findings -The findings reveal that the Malaysian market developed intangible assets at a rather slow pace, with significant development from year 2004 onwards. It also reveals that the book value of net assets (BVNA) are still dominant in Malaysian corporate valuation but this trend is declining as greater interest has now been developed in employing intangible assets and earnings as important variables. Furthermore, the results indicate that there is a positive trend in intangible assets development in Malaysia, consistent with those of advanced markets such as the US, Europe and Australia. However, the Malaysian market lags by about 20 years as compared to the more advanced ones.Research limitations/implications -The limitations of this paper are as follows: the time frame for this study was seven years and it looked at the post-financial crisis period. A longer time frame may be desirable covering both pre-and post-crisis periods. Secondly, this study did not look into intangible assets at the micro-level perspective. Unless solid definition, classification, measurement and valuation of intangible assets have been ascertained, it is not worth dwelling on individual assets, such as brand, research and development (R&D), and human capital. Originality/value -The main contribution of this study is that it provides empirical evidence that intangible assets or intellectual assets are strategic assets that require close attention in line with development of the knowledge-based economy.

This study examines whether investors take into consideration the balance sheet numbers when determining the market value of companies. Specifically, an investigation is made of the association between the book value of equity and the value placed on the firm by the stock market. An equity valuation model first mentioned by Landsman (1986), based on the balance sheet identity, is used to permit assets and liabilities to have separate empirical coefficient values. In scope, the study covers Malaysian main board companies from years 1990 to 1997. Evidence is provided which is consistent with the notion that the market incorporates information on accounting numbers in the valuation of a firm. As a general conclusion, the results indicate that investors do use information in the balance sheet.