Intellectual Capital Disclosure (ICD): a comparison of Italy and the UK

Purpose – To explore the hypothesis that differences in intellectual capital disclosure (ICD) practices can be explained, if in part, by industrial sector (traditional; knowledge intensive) and nationality of origin (Italy; UK). Design/methodology/approach – Content analysis of the annual reports of two reasonably matched samples of both high-technology and traditional non-financial firms in Italy and the UK. Univariate and multivariate analyses are then used to test the hypothesis proposed. Findings – Size and industrial sector are found to be predictors of levels of ICD; the hypothesis relating nationality of origin to ICD is not supported. Research limitations/implications – The main limitation relates to sample size due to the onerous nature of this form of research. Further research following this matched-sample methodology should attempt to maximise sample sizes allowing for the incorporation of more specific nationally of origin factors. Practical implications – Owing to the increasing importance of intangibles and intellectual capital, how these are reported is of interest to a large range of stakeholders. There is, as yet, no universally accepted form, or indeed regulation, of ICD. Originality/value – The matched-sample methodology on international ICD comparison expands on extant approaches.