Information Asymmetry and Intellectual Capital: An Agency Theory- Based Perspective

According to the Resource-based view of firm, intellectual capital is an intangible and strategic asset that enables companies to create competitive advantage and superior
financial performance. The failure of current financial statements in providing information about intellectual capital leads to increase information asymmetry between management and shareholders of company. Based on the agency theory, this situation provides conditions for management that enable them to pursue their personal benefit. Thus, current study seeks to answer of this question: Is there significant relationship between intellectual capital disclosure and agency costs? Therefore, in this study, the relationship between capital structure and agency costs by using the structural equation modeling approach has been investigated. The study sample consists of firms listed in Tehran Stock Exchange during the years 2003 to 2012. The result shows that firm’s intellectual capital has a significantly positive impact on agency costs. So we can argue that the lack of intellectual capital disclosure, increase agency conflicts between stakeholders and management.