The determinants of voluntary relational liabilities: empirical evidence

PurposeThe aim of this study is to analyse the factors that contribute to the disclosure of relational liabilities (RLs) of the US companies.Design/methodology/approachThe study uses content analysis to examine the disclosure of RLs in annual reports of the US companies listed on the Nasdaq-100 index from 2013 to 2015.FindingsThe study finds a positive correlation between the disclosure of RLs and gender diversity of the board of directors as well as the education level of the CEO. By contrast, the disclosure of RLs is negatively associated with the age of the CEO. Companies in knowledge-intensive industries also tend to disclose more information about their RLs than those in other industries.Originality/valueThis study focuses on the determinants of RLs, whereas previous research has mainly examined the positive impact of voluntary disclosure of intellectual capital on financial performance. The main objective of this study is to shed light on the factors that influence the disclosure of RLs.