TY - JOUR
T1 - Intellectual capital disclosure and dividend policy
T2 - Evidence from the Danish biotechnology-sector
AU - Nielsen, Christian
AU - Farooq, Omar
PY - 2015/2/13
Y1 - 2015/2/13
N2 - The purpose of this article is to document the relationship between intellectual capital disclosure and dividend policies of biotechnology firms listed on the Copenhagen Stock Exchange during the period between 2001 and 2010. The firms’ intellectual capital disclosures were computed from the annual financial reports, while data on dividend policies was retrieved from Worldscope. This paper defines dividend policies by three variables: (1) Dividend payout ratio, (2) Decision to pay dividend, and (3) Increase in dividend payout. The results show that firms with higher intellectual capital disclosures not only have high payout ratios, but also have a greater likelihood of increasing and paying dividends. Our findings are consistent with our hypothesis that lower information asymmetries of firms with high intellectual capital disclosure lead to more favourable dividend policies. In opposition to the expected hypotheses, the data does not indicate that intellectual capital disclosure and dividend policies affect firm performance or firm valuation.
AB - The purpose of this article is to document the relationship between intellectual capital disclosure and dividend policies of biotechnology firms listed on the Copenhagen Stock Exchange during the period between 2001 and 2010. The firms’ intellectual capital disclosures were computed from the annual financial reports, while data on dividend policies was retrieved from Worldscope. This paper defines dividend policies by three variables: (1) Dividend payout ratio, (2) Decision to pay dividend, and (3) Increase in dividend payout. The results show that firms with higher intellectual capital disclosures not only have high payout ratios, but also have a greater likelihood of increasing and paying dividends. Our findings are consistent with our hypothesis that lower information asymmetries of firms with high intellectual capital disclosure lead to more favourable dividend policies. In opposition to the expected hypotheses, the data does not indicate that intellectual capital disclosure and dividend policies affect firm performance or firm valuation.
U2 - 10.1504/IJLIC.2015.067841
DO - 10.1504/IJLIC.2015.067841
M3 - Journal article
SN - 1479-4853
VL - 12
SP - 82
EP - 102
JO - International Journal of Learning and Intellectual Capital
JF - International Journal of Learning and Intellectual Capital
IS - 1
ER -