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Purpose

This study is conducted with a motive of examining the impact of intellectual capital (IC) disclosure level on the firms’ value from the perspective of Indian companies.

Design/methodology/approach

Here IC disclosure level (ICDL) is measured on the basis of self-constructed disclosure index by scoring the IC disclosure (ICD) checklist using the content analysis technique. Moreover, in this study the secondary data are analyzed in panel form on a sample of 100 NSE listed companies for the time frame 2015–2016 to 2021–2022.

Findings

Empirical findings point out a significant and positive impact of ICDL on the firms’ value through maximizing Tobin’s Q ratio (TQ) and minimizing weighted average cost of capital (WACC) (finance cost).

Research limitations/implications

This study helps managers to measure the importance of ICDL and accordingly to make the disclosure policy to get competitive advantages.

Practical implications

This study helps managers to measure the importance of ICDL and accordingly to make the disclosure policy to get competitive advantages.

Originality/value

This study extends the present literature studies by examining the impact of ICDL on the firms’ value by considering market-based value and accounting-based value from the perspective of Indian companies.

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