Nexus Between Intellectual Capital Disclosure and Corporate Governance Quality: Evidence from IT Companies in India

Present days economic situations are changing rapidly. In view of liberalization, globalization and privatization, business organization are more towards following the system which not only cater the national standard but also to cater information neededby the stakeholders to take decisions about the corporates. Prior studies are underlining that traditional information provided by the companies in the annual reports are not sufficient for the stakeholders to reach into right decision. Hence the importance of disclosing additional information on intellectual capital and social, environment and governance practices of companies arisen. Such disclosure can give a further hand for the company on the market price and previous studiesare identified that the difference between one company's book value and market value is the effect made by the IC of thecompany. This paper is given an attempt to identify the extent of intellectual capital disclosure and the nexus between intellectual capital disclosure and corporate governance disclosure of IT companies in India. The study has revealed that the IT companies in India are decently reporting the information on IC for the selected period and the companies are giving more importance for relational capital. Current studyidentified that there have a significant relationship with IC disclosure and corporate governance disclosure practice among the selected companies.