Dissertation: The Effect of Intellectual Assets and Intellectual Liabilities Disclosure on Financial Performance

Review of the literature of Intellectual Capital has led to the development of several pertinent questions; these questions revolve around the different correlation schemes that link Intellectual Capital disclosure, Intellectual Assets and Intellectual Liabilities, to Firm Financial Performance. Also examined are questions of how Intellectual Capital components are disclosed in the annual reports of publicly listed companies within the UAE, and how they link to Firm Financial Performance. Empirical evidence of the domain does not consistently support measurement and disclosure theory and the results found appear to be contradictory (Andriessen, 2004; Phusavat et al., 2011). To the best knowledge of the author, it is believed that detailed research focused on testing the interactive effects of the disclosure of Intellectual Capital elements on Firm Financial Performance in publicly listed companies in the UAE has yet to be completed. Moreover, the primary aim of the research is to develop a new conceptual framework that addresses the underlying relationships between Intellectual Capital disclosure and Firm Financial Performance thus filling in the existing gap of knowledge and providing further illumination of the study domain. Moreover, by incorporating Intellectual Liabilities in the framework, this research brings a more refined, theoretically and empirically based conceptualization of Intellectual Capital than has been previously been provided, aiding in the development of a more robust theory of Intellectual Capital disclosure and its correlation with Firm Financial Performance.