Evaluation of the relationship between intellectual capital and accounting based determinants: A comparative analysis in world exchanges

This study examines the relation between intellectual capital value measured with market to book ratio and accounting-based measures with amprical data. Some of the accounting-based measurements are intellectual capital determinants whose relationship with the intellectual capital has been investigated in the literature. The otherone is the effect of International Financial Reporting Standards on intellectual capital value, which affects accounting reporting at the level of principles. Few studies in the literature have comprehensively tested the relationship between intellectual capital value and accounting-based intellectual capital determinants (Forte vd., 2015, 2017; Goebel, 2015). That studies has been carried out only in a country. A study investigating the impact of International Financial Reporting Standards on intellectual capital (Rabaya vd., 2018) has also done for a country. This research holistically tests the relationship between the value of intellectual capital and its accounting-based determinants. The effect of preparing financial statements in accordance with IFRS on the intellectual capital value is analysed comparatively with different countries. The study is the first empirical study to test the developed hypotheses with a holistic model in comparison with different countries. Study is designed with quantitative method. The data between 2000 and 2018 of 11,446 companies listed on 9 stock exchanges from different countries were used. The use of unbalanced panel data was preferred in the study conducted by making use of 126,244 observations. 5 hypotheses are tested with regression analyse. Driscoll-Kraay (1998) fixed effects robust estimator was chosen for use in regression analysis, consistent with the findings, after the unit root tests suggested in econometrics discipline for unbalanced panel data and the assumption deviation tests. As a result of the analysis, the findings are presented comparatively in the context of the country and the stock market. According to empirical findings, the findings of the study support that there is a strong positive relationship between financial leverage and intellectual capital value in all countries. It has been determined that the effect of ROE on the intellectual capital value varies from country to country and all coefficients are close to zero. While the effect of total asset size on the value of intellectual capital is generally negative, there is almost no relationship between the value of intangible and intellectual capital value. in all countries except Turkey and Germany it has been determined that there is a relationship between International Financial Reporting Standards for the preparation of financial statements in accordance with the value of intellectual capital. It has been determined that the accounting-based determinants of the companies in NASDAQ and New York Stock Exchange, which do not allow domestic companies to prepare financial statements in accordance with International Financial Reporting Standards, are insufficient in explaining the value of intellectual capital.