Quality of Intellectual Capital Disclosures: The Role of Market Share and Financial Distress in Thai’s Agricultural and Resource Sectors

This study aims to examine the factors that influence the quality of intellectual capital disclosure (ICD). This study contributes to research related to ICD by using the value of the market share and financial distress as independent variables, in addition to the level of firm size. This study also tests the ICD in each of its components. Firm size is indicated by the amount of assets owned by the company; while market share is measured by the proportion of company sales in the total sales of one industry. Financial distress is indicated by the Altman-Z score, where the greater the Z-score, the safer the company from the risk of bankruptcy. ICD are more qualified if disclosures are supplemented by numerical and monetary data. The sample used is 50 agricultural and resource sectors companies registered in the Thai Stock Exchange from 2013-2017. This study finds that the quality of HCD is increasing along with the company's high assets. Market share can improve the quality of RCD, but on the other hand, reduce the quality of HCD. The safer the company from the bankruptcy risk, the higher the quality of the HCD. There are a variety of ICD measurements that can be used by subsequent research and are complemented by various other independent variables that can enrich empirical findings in ICD cases.