Voluntary Intellectual Capital Disclosure: A Theoretical Test of Proprietary Cost

Abstract

. Cost of equity could be minimalized by intellectual capital disclosure. Quality of information in this intellectual capital disclosure depends on the cost of proprietary, cost of information, and the relevance to get the information. This study was conducted to give empirical evidences about model analyze of intellectual capital to the cost based on theory of signaling and theory of proprietary cost. This study used design of quantitative research. Samples in this study were the enterprises that were registered in Indonesian Bursary Effect, except to the enterprises of financial industry in 2015 – 2019. Sampling extraction was performed by method of purposive sampling. Data analyzing used statistic of descriptive analyzes and regression of moderating. Test of hypothesis was conducted by analyzing technic of test of comparing coefficients across regressions. The results of data analysis of the research showed that increasing the disclosure of voluntary intellectual capital could decrease cost of equity. The low cost of proprietary could strengthen negative effects of the intellectual capital disclosure on cost of equity. The low cost of information could not strengthen negative effects of the intellectual capital disclosure on cost of equity. The high relevance of information could not strengthen negative effects of the intellectual capital disclosure on cost of equity.