The Study Of Information Disclosure On Enterprise's Intellectual Capital

With the development of information technology and economic globalization, Chinese companies are facing more and more challenges. In order to keep up with other countries in competition, China has worked out her developmental strategy, building up an innovative Country. In companies human-oriented management is encouraged, and innovation, research and development are attached great importance. Companies have realized they, themselves, are the key factor in independent innovation. All this shows that companies as well as the state are aware of the importance of intellectual capital in economic development.Intellectual capital is divided into three components:human capital, structural capital and customer capital. Content analysis was conducted on the annual reports of listed corporations of Hushen 300 Index from 2006 to 2008 to study disclosure of information on intellectual capital.It can be seen from the analysis that more and more information on enterprise's intellectual capital is being disclosed, and disclosure frequency concerned with personnel status and elements of financial relation is higher than that of enterprise culture and relation of information-network. Differences exist in industries and areas. With regards to industries, more information is disclosed concerned with financial, insurance and IT industry, less with farming, forestry, animal husbandry and fishery industry. As for areas, east and costal areas are better than middle and west areas.Comparison is also made for intellectual capital disclosure in different countries. Intellectual capital is differently classified in countries; but basically it is classified as human capital, organizational capital and customer capital. It is the same as other countries (areas) that customer capital is mostly disclosed in China, next human capital and last organizational capital. The results showed China's disclosure of intellectual capital was at the middle level, and it was not as good as developed countries, such as New Zealand, Italy and so on.It is found out through empirical analysis that human, organizational and customer capital are dependent on each other and they are affected by each other. In addition, information disclosure is also affected by profitability, company scale, number of independent directors, developmental level of areas, different industries, M/B, market competitivity and financial leverage.As available financial reports are difficult to meet the needs and most corporations give incomplete intellectual capital disclosure, it is necessary to build up a new framework to reveal intellectual capital in enterprises. Social responsibility report has its most content very similar to intellectual capital disclosure, so the author suggests incorporating social responsibility report with intellectual capital report. The paper puts forward 11 principles in compiling intellectual capital report, and makes a detailed description of the content of intellectual capital so as to give a complete picture of it.In the paper the author also makes some suggestions about intellectual capital disclosure, concerned with listed corporations.