This study empirically examines the impact of intellectual capital disclosure (ICD) on firm value and aims to correct the misapprehension that intellectual capital (IC) is vital only for the knowledge-based sector. Using a comprehensive ICD framework, the annual reports of 76 listed Indian firms were analyzed over a period of 10 years from 2010–2011 to 2019–2020. Firm value was measured using market capitalization, and the findings from the pooled ordinary least squares model indicate a significant positive relationship between ICD and firm value in both knowledge-intensive and traditional manufacturing sectors. These results highlight the broader relevance of IC transparency in enhancing market valuation of two distinct sectors: knowledge-driven and physical capital-intensive firms. Additionally, the findings demonstrate that investors value ICD, underscoring the importance of greater transparency in corporate reporting to strengthen investor confidence and drive firm performance.
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