Towards a comprehensive theoretical framework for voluntary IC disclosure

This paper aims to construct a comprehensive theoretical framework for interpreting voluntary IC disclosure practices by organizations.

Four most‐commonly used theories in the area, namely agency theory, stakeholder theory, signalling theory, and legitimacy theory, were integrated in terms of the interrelated concepts relating to voluntary IC disclosure.

The constructed theoretical framework includes three concepts: to reduce information asymmetry; to discharge accountability to various stakeholders; and to signal organizational legitimacy and excellence (or superior quality) to society, which are seen as motivations for organizations to disclose their IC on a voluntary basis.

The framework ignores some other theoretical perspectives which are also relevant to voluntary IC disclosure; the framework is not justified by any empirical evidence.

This research is the first attempt to construct a comprehensive theoretical framework for the voluntary disclosure of IC; the constructed framework can be employed as a theoretical foundation for future empirical studies in relation to voluntary IC disclosure.