The use of intellectual capital information in investment decisions. An empirical study using analyst reports

International Journal of Accounting

Volumn 42, Issue 1, 2007, Pages 57-81

  García Meca, Emma ^a   Martínez, Isabel ^a  

^a UNIVERSITY OF MURCIA   (Spain)

Author keywords

Capital markets; Financial analysts; Intangible assets; Intellectual capital; Valuation; Voluntary disclosure

Indexed keywords

EID: 33847415081     PISSN: 00207063     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.intacc.2006.12.003     Document Type: Article

References (73)

1. Adrem A.H. Essays on disclosure practices in Sweden, causes and effects. Lund Studies in Economics and Management vol. 51 (1999), Lund University Press: The Institute of Economic Research
2. Ahmed K., and Nichols D. The impact of non-financial company characteristics on mandatory disclosure compliance in developing countries: The case of Bangladesh. The International Journal of Accounting 29 1 (1994) 62-67
3. Amir E., Lev B., and Sougiannis T. Do financial analysts get intangibles?. European Accounting Review 12 4 (2003) 635-659
4. Andreu R., and Ciborra C. Organisational learning and core capabilities development: The role of IT. Journal of Strategic Information Systems 5 1 (1996) 111-127
5. Arvidsson, S. (2003). Demand and Supply of Information on Intangibles - The Case of Knowledge-intensive Companies. Ph.D. dissertation, University of Lund: The Institute of Economic Research.
6. Barker R. The market for information. Evidence from finance directors, analysts and fund managers. Accounting and Business Research 29 1 (1998) 3-20
7. Barker R. The role of dividends in valuation models used by analysts and fund managers. European Accounting Review 8 2 (1999) 195-218
8. Barney J.B. Firm resources and sustained competitive advantage. Journal of Management 17 1 (1991) 99-120
9. Barron O.E., Byard D., Kile C., and Rield E.J. High-technology intangibles and analysts' forecasts. Journal of Accounting Research 40 2 (2002) 1-34
10. Beattie V. Business reporting: The inevitable change (1999), Institute of Chartered Accountants of Scotland, Edinburgh
11. Bosworth D., and Rogers M. Market value, R&D, and intellectual property: An empirical analysis of large Australian firms. The Economic Record 77 239 (2001) 323-337
12. Bouwman M., Frishkoff P., and Frishkoff P. How do financial analysts make decisions? A process model of the investment screening decision. Accounting, Organizations and Society 12 1 (1987) 1-29
13. Bozzolan S., Favotto F., and Ricceri F. Italian annual intellectual capital disclosure: An empirical analysis. Journal of Intellectual Capital 4 4 (2003) 539-554
14. Bradshaw M., Richardson S., and Sloan R. Do analysts and auditors use information in accruals?. Journal of Accounting Research 39 1 (2001) 45-74
15. Breton G., and Taffler R.J. Accounting information and analysts stock recommendation decisions: A content analysis approach. Accounting and Business Research 31 2 (2001) 91-101
16. Bukh P.N., Nielsen C., Gormses P., and Mouritsen J. Disclosure of intellectual capital in Danish IPO Prospectuses. Accounting, Organisation and Society 4 4 (2004) 576-587
17. Cerf A.R. Corporate reporting and investment decisions (1961), University of California Press 25-27
18. Chung L., and Meador W. The stock valuation process: The analysts' view. Financial Analysts Journal 40 6 (1984) 41-48
19. Collins D.J., and Montgomery C.A. Competing on resources. Harvard Business Review (1995, July 1) 118-128
20. Cooke T.E. Disclosure in the corporate annual reports of Swedish companies. Accounting and Business Research 19 74 (1989) 533-541
21. Dempsey S.J., Gatti J.F., Grinell D.J., and Cats-Baril W.L. The use of strategic performance variables as leading indicators in financial analysts forecasts. Journal of Financial Statement Analysis 2 4 (1997) 61-79
22. Eccles R.C., and Kahn H. Pursuing value: The information reporting gap in the U.S. capital markets (1998), Pricewaterhouse Coopers LLP
23. Eccles R.C., and Mavrinac S.C. Improving the corporate disclosure process. Sloan Management Review 36 4 (1995) 11-25
24. Edvisson L., and Malone M.S. Intellectual capital, realizing your company's true value by finding its hidden brainpower (1997), Harper Collins Publishers, New York
25. Ferguson M., Lam K., and Lee G. Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong. Journal of International Financial Management and Accounting 13 2 (2002) 125-152
26. Financial Accounting Standards Board. Improving business reporting: Insights into enhancing voluntary disclosures. Business reporting research project (2001, January)
27. Financial Accounting Standards Board. Business and financial reporting. Challenges from the new economy. Special Report (2001, April)
28. Frankel R., Kothari S.P., and Weber J. Determinants of the informativeness of analyst research. Journal of Accounting and Economics 41 (2006) 29-54
29. García-Ayuso M. Factors explaining the inefficient valuation of intangibles. Accounting, Auditing, and Accountability Journal 16 3 (2003) 7-69
30. García-Meca E., Parra I., Larrán M., and Martínez I. The explanatory factors of intellectual capital disclosure to financial analysts. The European Accounting Review 14 1 (2005) 63-95
31. Giner Inchausti B. The influence of company characteristic and accounting regulation on information disclosed by Spanish firms. The European Accounting Review 6 1 (1997) 45-68
32. Gray S.J., Meek G.K., and Roberts C.B. International capital market pressures and voluntary annual report disclosures by U.S. and U.K. multinationals. Journal of International Financial Management and Accounting 6 1 (1995) 43-68
33. Guthrie J. The management, measurement and the reporting of intellectual capital. Journal of Intellectual Capital 2 1 (2001) 27-41
34. Guthrie J., Johanson U., Bukh P.N., and Sánchez P. Intangibles and the transparent enterprise: New strands of knowledge. Journal of Intellectual Capital 4 4 (2003) 429-440
35. Hail L. The impact of voluntary corporate disclosures on the ex-ante cost of capital for Swiss firms. European Accounting Review 11 4 (2002) 741-773
36. Hillman A.J., and Keim G.D. Shareholder value, stakeholder, management, and social issues: What's the bottom line?. Strategic Management Journal 22 1 (2001) 125-139
37. Hossain M., Tan L.M., and Adams M. Voluntary disclosure in an emerging capital market: Some empirical evidence from firms listed on the Kuala Lumpur Stock Exchange. The International Journal of Accounting 29 3 (1994) 334-351
38. Hossain M., Tan L.M., and Adams M. Voluntary disclosure in the annual reports of New Zealand firms. Journal of International Financial Management and Accounting 6 1 (1995) 69-87
39. Itami H., and Roehl T.W. Mobilizing invisible assets (1987), Harvard University Press, Cambridge MA
40. Jaggi B., and Low P. Impact of culture, market forces and legal system on financial disclosures. The International Journal of Accounting 35 4 (2000) 495-519
41. Johanson U. Why are capital markets ambivalent to information about certain indicators on intangibles?. Accounting, Auditing and Accountability Journal 16 1 (2003) 31-38
42. Kaplan R., and Norton D. The balanced scorecard-translating into actions (1996), Harvard Business School Press, Boston
43. Lang M., and Lundholm R. Cross sectional determinants of analysis ratings of corporate disclosures. Journal of Accounting Research 31 2 (1993) 246-271
44. Larrán Jorge M. El mercado de información voluntaria en las bolsas de valores (2001), Instituto de Contabilidad y Auditoría de Cuentas, Madrid
45. Libro Blanco. Informe sobre la situación de la contabilidad en España y líneas básicas para abordar su reforma (2002), Instituto de Contabilidad y Auditoría de Cuentas, Madrid
46. Leftwich R., Watts R., and Zimmerman J. Voluntary corporate disclosure: The case of interim reporting. Journal of Accounting Research 19 (1981) 50-77 (Supl.)
47. Lev B. Intangibles: Measurement, management and reporting (2001), Brookings Institution Press, Washington DC
48. Lev B., and Sougiannis T. The capitalization, amortization, and value-relevance of R&D. Journal of Accounting and Economics 21 2 (1996) 107-138
49. Loro D. The communication of intangibles and intellectual capital: An empirical model of analysis (2002), Italian Association of Financial Analysts, University of Ferrara
50. Low J. The value creation index. Journal of Intellectual Capital 1 3 (2000) 252-262
51. Marston C.L. Investor relations: Meeting the analysts (1996), The Institute of Chartered Accountants of Scotland, Edinburgh
52. Marston C.L., and Shrives P.J. The use of disclosure indices in accounting research: A review article. British Accounting Review 23 3 (1991) 195-210
53. Mavrinac S., and Boyle T. Sell-side analysts, non financial performance evaluation and the accuracy of short term earnings forecasts (1996), Ernst and Young LLP, Boston
54. Mavrinac S., and Siesfeld T. Measures that matter. An exploratory investigation of investors' information needs and value priorities (1997), Ernst and Young LLP, Boston
55. Meritum, R. (2002). Guidelines for managing and reporting on intangibles; intellectual capital report, January, Ed. Madrid: Fundación Airtel Móvil.
56. Michaely R., and Womack K. Conflict of interest and the credibility of underwriter analysts recommendations. The Review of Financial Studies 12 4 (1999) 653-686
57. Mouritsen J., Larsen H.T., and Bukh P.N.D. Intellectual capital and the "capable firm": Narrating, visualising and numbering for managing knowledge. Accounting, Organizations and Society 26 7 and 8 (2001) 735-762
58. Orens R., and Lyabert N. The use of non-financial information by financial analysts: A content analysis approach. Presented at the 27th annual congress of the European Accounting Association, Prague (2004)
59. Previs G.J., Bricker R.J., Robinson T.R., and Young S.J. A content analysis of sell-side financial analyst company reports. Accounting Horizons 8 2 (1994) 55-70
60. Richardson A.J., and Welker M. Social disclosure, financial disclosure and the cost of capital. Accounting, Organizations and Society 26 7 and 8 (2001) 97-616
61. Robb S.W.G., Single L.E., and Zarzeski M.T. Nonfinancial disclosures across Anglo-American countries. Journal of International Accounting, Auditing and Taxation 10 1 (2001) 71-83
62. Rogers R.K., and Grant J. Content analysis of information cited in reports of sell-side financial analysts. The Journal of Financial Statement Analysis 3 (1997) 17-30
63. Schipper K. Analysts' forecasts. Accounting Horizons 5 4 (1991) 105-121
64. Simpson W.G., and Kohers T. The link between corporate social and financial performance: Evidence from the banking industry. Journal of Business Ethics 35 2 (2002) 97-109
65. Singhvi S.S., and Desai H.B. An empirical analysis of the quality of corporate financial disclosure. The Accounting Review 46 (1971) 129-138
66. Investor information needs and the annual report (1987), Morristown, NJ: Financial Executives Research Foundation.
67. Stanwick P., and Stanwick S. The relationship between corporate social performance, and organizational size, financial performance, and environmental performance: An empirical examination. Journal of Business Ethics 17 1 (1998) 195-204
68. Sveiby K.E. The new organizational wealth managing and measuring knowledge-based assets (1997), Berrett Koehler Publishers, San Francisco
69. Tasker S. Bridging the information gap: Quarterly conference calls as a medium for voluntary disclosure. Review of Accounting Studies 3 (1998) 137-167
70. Verschoor C. Corporate performance is closely linked to a strong ethical commitment. Business and Society Review 104 4 (1999) 407-415
71. Wallace R.S.O., Naser K., and Mora A. The relationship between comprehensiveness of corporate annual reports and firm characteristics in Spain. Accounting and Business Research 25 97 (1994) 41-53
72. Weetman P., and Beattie A. Corporate communications: Views of institutional investors and lenders (1999), The Institute of Chartered Accountants of Scotland, Edinburgh
73. Williams S.M. Voluntary environmental and social accounting disclosure practices in the Asia-Pacific region: An international empirical test of political economy theory. The International Journal of Accounting 34 3 (1999) 209-238