Intangible assets, information complexity, and analysts' earnings forecasts

Journal of Business Finance and Accounting

Volumn 32, Issue 9-10, 2005, Pages 1673-1702

  Gu, Feng ^a,b,c   Wan, Weimin ^a,b  

^a UNIVERSITY AT BUFFALO   (United States)

^b TULANE UNIVERSITY   (United States)

^c 160 Jacobs Management Center   (United States)

Author keywords

Analysts' earnings forecasts; Information complexity; Intangible assets

Indexed keywords

EID: 29244475332     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/j.0306-686X.2005.00644.x     Document Type: Article

References (44)

1. Aaker, D. and J. Carman (1982), 'Are You Overadvertising?', Journal of Adverting Research, Vol. 22, No. 4, pp. 57-70.
2. Abarbanell, J. and V. Bernard (2000), 'Is the U.S. Stock Market Myopic?', Journal of Accounting Research, Vol. 38, No. 2 (Autumn), pp. 221-42.
3. Barney, J. (1991), 'Firm Resources and Sustained Competitive Advantage', Journal of Management, Vol. 17, No. 1, pp. 99-120.
4. Baron, R. (2004), 'National Television Exposure Still Vital to New Product Introductions', TelevisionWeek, Vol. 23, No. 17, pp. 23.
5. Barth, M., R. Kasznik and M. McNichols (2001), 'Analyst Coverage and Intangible Assets', Journal of Accounting Research, Vol. 39, No. 1, pp. 1-34.
6. Brown, L. (1993), 'Earnings Forecast Research: Its Implications for Capital Market Research', International Journal of Forecasting, Vol. 9, No. 3, pp. 295-320.
7. Cabral, L. (2000), Introduction to Industrial Organization (Cambridge, MA: MIT Press).
8. Christensen, C. (1997), The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail, (Boston, MA: Harvard Business School Press).
9. Cohen, W. and R. Levinthal (1989), 'Innovation and Learning: The Two Faces of R&D - Implications for the Analysis of R&D Investment', Economic Journal, Vol. 99, pp. 569-96.
10. _, R. Nelson and J. Walsh (2000), 'Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)', Working Paper (Carnegie Mellon University).
11. Cumming, D. and J. Macintosh (2000), 'The Determinants of R&D Expenditures: A Study of the Canadian Biotechnology Industry, Review of Industrial Organization, Vol. 17, No. 4, pp. 357-70.
12. Dugas, C. (1984), 'A Computerized Shiseido Takes Another Crack at U.S. Cosmetics', Ad Forum, Vol. 5, No. 9, pp. 53-4.
13. Duru, A. and D. Reeb (2002), 'International Diversification and Analysts' Forecast Accuracy and Bias', Accounting Review, Vol. 77, No. 2, pp. 415-33.
14. Ely, K., P. Simko and L.G. Thomas (2002), 'The Usefulness of Biotechnology Firms' Drug Development Status in the Evaluation of Research and Development Costs', Working Paper (Georgia Institute of Technology).
15. Fama, E. and J. MacBeth, (1973), 'Risk, Return, and Equilibrium-Empirical Tests', Journal of Political Economy, Vol. 81, pp. 607-36.
16. FASB (Financial Accounting Standards Board) (1974), SFAS No. 2; Accounting for Research and Development Costs (Stamford, Conn).
17. Fitzgerald, K. (1989), 'Toy Makers Plan Big Ad Boost', Advertising Age, Vol. 60, No. 8, pp. 71.
18. Giarratana, M. (2004), 'The Birth of a New Industry: Entry by Start-ups and the Drivers of Firm Growth-The Case of Encryption Software', Research Policy, Vol. 33, pp. 787-806.
19. Granstrand, O. (1998), 'Towards a Theory of the Technology-based Firm', Research Policy, Vol. 27, pp. 465-89.
20. Hall, B., A. Jaffe and M. Trajtenberg (2001), 'The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools', NBER Working Paper 8498.
21. Hansen, Z. and M. Law (2004), 'The Political Economy of "Truth-in-Advertising"Regulation during the Progressive Era', Working Paper (Washington University).
22. Haw, L, K. Jung and W. Ruland (1994), 'The Accuracy of Financial Analysts' Forecasts After Mergers', Journal of Accounting, Auditing, and Financing, Vol. 9, No. 3, pp. 465-87.
23. Hwang, L., C. Jan and S. Basu (1996), 'Loss Firms and Analysts' Earnings Forecast Errors', Journal of Financial Statement Analysis, Vol. 1, No. 2, pp. 18-30.
24. Jaffe, A., M. Trajtenberg and R. Henderson (1993), 'Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations', Quarterly Journal of Economics, Vol. 108, No. 3, pp. 577-98.
25. Kaplan, S. (1999), 'Discontinuous Innovation and the Growth Paradox', Strategy & Leadership, Vol. 27, No. 2, pp. 16-21.
26. Lang, M. and R. Lundholm (1996), 'Corporate Disclosure Policy and Analyst Behavior', Accounting Review, Vol. 71, No. 4, pp. 467-92.
27. Lev, B. (2001), Intangibles. Management, Measurement, and Reporting (Washington, DC: Brookings Institution Press).
28. _ and T. Sougiannis (1996), 'The Capitalization, Amortization, and Value-Relevance of R&D', Journal of Accounting and Economics, Vol. 21, No. l, pp. 107-38.
29. _ and P. Zarowin (1999), 'The Boundaries of Financial Reporting and How to Extend Them', Journal of Accounting Research, Vol. 37, No. 2, pp. 353-85.
30. Levin, R., A. Klevorick, R. Nelson and S. Winter (1987), 'Appropriating the Returns from Industrial R&D', Brookings Papers on Economic Activity, pp. 783-820.
31. Liao, Z. and M. Cheung (2002), 'Do Competitive Strategies Drive R&D? An Empirical Investigation of Japanese High-technology Corporations', Journal of High Technology Management Research, Vol. 13, No. 2, pp. 143-56.
32. Lilien, G., P. Kotler and K. Moorthy (1992), Marketing Models (Englewood, NJ: Prentice Hall).
33. Luft, J. arid M. Shields (2001), 'Why Does Fixation Persist? Experimental Evidence on the Judgment Performance Effects of Expensing Intangibles', Accounting Review, Vol. 76, No. 4, pp. 561-87.
34. Lynn, G., J. Morone and A. Paulson (1996), 'Marketing and Discontinuous Innovation: The Probe and Learn Process', California Management Review, Vol. 38, No. 3, pp. 8-37.
35. Mansfield, E. and S. Wagner (1977), The Production and Application of New Industrial, Technology (Norton, New York, N.Y).
36. Mowery, D. (1983), 'The Relationship between Intrafirm and Contractual Form of Industrial Research in American Manufacturing, 1900-1940', Explorations in Economic History, Vol. 20, pp. 351-74.
37. Payne, J., J. Bettman and E. Johnson (1988), 'Adaptive Strategy Selection in Decision Making", Journal of Experimental Psychology: Learning, Memory and Cognition, Vol. 14, No. 4, pp. 534-52.
38. Picconi, M. (1977), 'A Reconsideration of the Recognition of Advertising Assets on Financial Statements', Journal of Accounting Research, Vol. 15, No. 2, pp. 317-26.
39. Plumlee, M. (2003), 'The Effect of Information Complexity on Analysts' Use of That Information', Accounting Review, Vol. 78, No. 1, pp. 275-96.
40. Scherer, F., D. Harhoff and J. Kukies (1998), 'Uncertainty and Size Distribution of Rewards from Technological Innovation", Journal of Evolutionary Economics, Vol. 10, pp. 175-200.
41. Shortridge, R. (2001), 'Measuring R&D Success: A Study of New Drug Approvals in the Pharmaceutical Industry', Working Paper (Ball State University).
42. Siegfried, J. (1998), 'The Drug Development and Approval Process', New Medicines in Development Biotechnology, 34.
43. Titman, S. and R. Wessels (1988), 'The Determinants of Capital Structure Choice', Journal, of Finance, Vol. 43, pp. 1-19.
44. Trajtenberg, M., A. Jaffe and R. Henderson (1997), 'University versus Corporate Patents: A Window on the Basicness of Innovation', Economics of Innovation and New Technology, Vol. 5, pp. 19-50.