Intellectual Capital Disclosure and Cost of Equity

In the last decades, many authors have been discussed and investigated the role of intangibles in determining the value of the firm. The transition from the traditional economy to a knowledge-based economy has recognised the failure of accounting in reporting in the annual reports intangible resources. Consequently, the stakeholders’ companies have become more interested in disclosures on intangible resources and many studies have been conducted to highlight the benefits of firms with higher level of disclosures, such as the reduction of cost of equity. This book aims to analyse the relationship between intellectual capital disclosure and the cost of equity in the Italian Stock Exchange.