The Role of Board Characteristics in Intellectual Capital Disclosure: A Study of Jordanian Companies from 2010 to 2019
Keywords:
FE/IV/GMM., Board Activity,, Gender Diversity,, Board Independence,, Board Size,, Agency Theory,, , Amman Stock Exchange,, Corporate Governance, Intellectual Capital Disclosure (ICD),, Board Characteristics,Abstract
This study examines the impact of board characteristics on the quality of intellectual capital disclosure (ICD) among large-scale Jordanian companies listed on the Amman Stock Exchange from 2010 to 2019. Utilizing agency theory as the theoretical framework, this research investigates how board size, independence, gender diversity, and activity levels influence the quality of ICD. The sample consists of 70 industrial and service companies, resulting in the analysis of 700 annual reports. Employing the Fixed Effects/Instrumental Variables/Generalized Method of Moments (FE/IV/GMM) estimation method, the study addresses endogeneity, omitted variable bias, and unobserved heterogeneity. The findings indicate that larger boards, a higher proportion of non-executive directors, greater gender diversity, and increased board activity positively affect ICD quality. These results underscore the importance of specific board attributes in fostering corporate transparency and enhancing the quality of intellectual capital information disclosed. The study provides valuable insights for policymakers and corporate governance practitioners, suggesting that board composition and activity levels are critical factors in promoting effective disclosure practices. Future research directions include examining the effects of other board characteristics and expanding the analysis to include multiple countries for cross-cultural comparisons.
