Intellectual capital information and stock recommendations: Impression management?

Journal of Intellectual Capital

Volumn 13, Issue 3, 2012, Pages 398-415

  Abhayawansa, Subhash ^a   Guthrie, James ^b  

^a SWINBURNE UNIVERSITY OF TECHNOLOGY   (Australia)

^b MACQUARIE UNIVERSITY   (Australia)

Author keywords

Financial analysis; Impression management; Intellectual capital; Sell side analysts; Stock recommendations; Stocks

Indexed keywords

EID: 84864133910     PISSN: 14691930     EISSN: None     Source Type: Journal    
DOI: 10.1108/14691931211248945     Document Type: Article

References (64)

1. Abhayawansa, S.A. (2011), "A methodology for investigating intellectual capital information in analyst reports" in Journal of Intellectual Capital, Vol. 12, No. 3, pp. 446-76.
2. Abhayawansa, S.A. and Abeysekera, I. (2009), "Intellectual capital disclosure from sell-side analyst perspective" in Journal of Intellectual Capital, Vol. 10, No. 2, pp. 294-306.
3. Arvidsson, S. (2003), "Demand and supply of information on intangibles: the case of knowledge-intense companies", PhD thesis, Lund University, Lund.
4. Asquith, P., Mikhail, M.B. and Au, A.S. (2005), "Information content of equity analyst reports" in Journal of Financial Economics, Vol. 75, No. 2, pp. 245-82.
5. Beattie, V. and Thomson, S.J. (2007), "Lifting the lid on the use of content analysis to investigate intellectual capital disclosures" in Accounting Forum, Vol. 31, No. 2, pp. 129-63.
6. Boedker, C., Guthrie, J. and Cuganesan, S. (2005), "An integrated framework for visualising intellectual capital" in Journal of Intellectual Capital, Vol. 6, No. 4, pp. 510-27.
7. Boyatzis, R.E. (1998), Transforming Qualitative Information: Thematic Analysis and Code Development, Sage Publications, Thousand Oaks, CA.
8. Bradshaw, M.T. (2002), "The use of target prices to justify sell-side analysts' stock recommendations" in Accounting Horizons, Vol. 16, No. 1, pp. 27-41.
9. Bradshaw, M.T. (2004), "How do analysts use their earnings forecasts in generating stock recommendations?" in The Accounting Review, Vol. 79, No. 1, pp. 25-50.
10. Breton, G. and Taffler, R.J. (2001), "Accounting information and analyst stock recommendation decisions: a content analysis approach" in Accounting and Business Research, Vol. 31, No. 2, pp. 91-101.
11. Campbell, D. and Slack, R. (2008), Narrative Reporting: Analysts' Perception of its Value and Relevance, Association of Chartered Certified Accountants, London.
12. Chan, L.K.C., Karceski, J. and Lakonishok, J. (2007), "Analysts' conflicts of interest and biases in earnings forecasts" in Journal of Financial & Quantitative Analysis, Vol. 42, No. 4, pp. 893-913.
13. Cho, C.H., Roberts, R.W. and Patten, D.M. (2010), "The language of US corporate environmental disclosure" in Accounting, Organizations and Society, Vol. 35, No. 4, pp. 431-43.
14. Das, S., Levine, C. and Sivaramakrishnan, S. (1998), "Earnings predictability and bias in analysts' earnings forecasts" in The Accounting Review, Vol. 73, No. 2, pp. 277-94.
15. Davison, J. (2010), "[In]visible [in]tangibles: visual portraits of the business élite" in Accounting, Organizations and Society, Vol. 35, No. 2, pp. 165-83.
16. Dechow, P., Hutton, A. and Sloan, R. (2000), "The relation between analysts' forecasts of long-term earnings growth and stock price performance following equity offerings" in Contemporary Accounting Research, Vol. 17, No. 1, pp. 1-32.
17. Demirakos, E.G., Strong, N.C. and Walker, M. (2004), "What valuation models do analysts use?" in Accounting Horizons, Vol. 18, No. 4, pp. 221-40.
18. Fang, L. and Yasuda, A. (2009), "The effectiveness of reputation as a disciplinary mechanism in sell-side research" in The Review of Financial Studies, Vol. 22, No. 9, pp. 3735-77.
19. Finger, C.A. and Landsman, W.R. (2003), "What do analysts' stock recommendations really mean?" in Review of Accounting & Finance, Vol. 2, No. 2, pp. 67-88.
20. Flöstrand, P. (2006), "The sell side - observations on intellectual capital indicators" in Journal of Intellectual Capital, Vol. 7, No. 4, pp. 457-73.
21. Fogarty, T.J. and Rogers, R.K. (2005), "Financial analysts' reports: an extended institutional theory evaluation" in Accounting, Organizations and Society, Vol. 30, No. 4, pp. 331-56.
22. Francis, J. and Soffer, L. (1997), "The relative informativeness of analysts' stock recommendations and earnings forecast revisions" in Journal of Accounting Research, Vol. 35, No. 2, pp. 193-211.
23. Frankel, R., Kothari, S.P. and Weber, J.P. (2006), "Determinants of the informativeness of analysts' research" in Journal of Accounting and Economics, Vol. 41, Nos 1-2, pp. 29-54.
24. García-Ayuso, M. (2003), "Factors explaining the inefficient valuation of intangibles" in Accounting, Auditing and Accountability Journal, Vol. 16, No. 1, pp. 57-69.
25. García-Meca, E. (2005), "Bridging the gap between disclosure and use of intellectual capital information" in Journal of Intellectual Capital, Vol. 6, No. 3, pp. 427-40.
26. García-Meca, E. and Martínez, I. (2007), "The use of intellectual capital information in investment decisions: an empirical study using analyst reports" in International Journal of Accounting, Vol. 42, No. 1, pp. 57-81.
27. Gardner, W.L. and Martinko, M.J. (1988), "Impression management in organizations" in Journal of Management, Vol. 14, No. 2, pp. 321-38.
28. Highhouse, S., Brooks, M.E. and Gregarus, G. (2009), "An organizational impression management perspective on the formation of corporate reputations" in Journal of Management, Vol. 35, No. 6, pp. 1481-93.
29. Hirst, D.E., Koonce, L. and Simko, P.J. (1995), "Investor reactions to financial analysts' research reports" in Journal of Accounting Research, Vol. 33, No. 2, pp. 335-51.
30. Ho, M.J. and Harris, R.S. (2000), "Brokerage analysts' rationale for investment recommendations: market response to different types of information" in Journal of Financial Research, Vol. 23, No. 4, pp. 449-68.
31. Holland, J. (2003), "Intellectual capital and the capital market - organisation and competence" in Accounting, Auditing and Accountability Journal, Vol. 16, No. 1, pp. 39-48.
32. Holland, J. (2006), "Fund management, intellectual capital, intangibles and private disclosure" in Managerial Finance, Vol. 32, No. 4, pp. 277-316.
33. Hong, H. and Kubik, J. (2003), "Analyzing the analysts: career concerns and biased earnings forecasts" in Journal of Finance, Vol. 58, No. 1, pp. 313-51.
34. Jackson, A.R. (2005), "Trade generation, reputation, and sell-side analysts" in Journal of Finance, Vol. 60, No. 2, pp. 673-717.
35. Johansson, J. (2007), "Sell-side analysts' creation of value - key roles and relational capital" in Journal of Human Resource Costing and Accounting, Vol. 11, No. 1, pp. 30-52.
36. Kaufmann, L. and Schneider, Y. (2004), "Intangibles: a synthesis of current research" in Journal of Intellectual Capital, Vol. 5, No. 3, pp. 366-88.
37. Krippendorff, K. (2004), "Reliability in content analysis - some common misconceptions and recommendations" in Human Communication Research, Vol. 30, No. 3, pp. 411-33.
38. Li, F. (2008), "Annual report readability, current earnings, and earnings persistence" in Journal of Accounting and Economics, Vol. 45, Nos 2-3, pp. 221-47.
39. Malloy, C.J. (2005), "The geography of equity analysis" in Journal of Finance, Vol. 60, No. 2, pp. 719-55.
40. Malmendier, U. and Shanthikumar, D.M. (2006), "Do security analysts speak in two tongues?", paper presented at the Mid-Year Meeting of the Financial Accounting and Reporting Section of the American Accounting Association, Atlanta, GA, 27-28 January.
41. Malmendier, U. and Shanthikumar, D.M. (2007), "Are small investors naive about incentives?" in Journal of Financial Economics, Vol. 85, No. 2, pp. 457-89.
42. Mehrana, H. and Stul, R.M. (2007), "The economics of conflicts of interest in financial institutions" in Journal of Financial Economics, Vol. 85, No. 2, pp. 267-96.
43. Michaely, R. and Womack, K.L. (2005), "Market efficiency and biases in brokerage recommendations" in Thaler, R. (Ed.), Advances in Behavioral Finance II, Princeton University Press, Princeton, NJ, pp. 389-422.
44. Morgan, J. and Stocken, P. (2003), "An analysis of stock recommendations" in The Rand Journal of Economics, Vol. 34, No. 1, pp. 183-203.
45. Mouritsen, J. (2003), "Intellectual capital and the capital market: the circulability of intellectual capital" in Accounting, Auditing and Accountability Journal, Vol. 16, No. 1, pp. 18-30.
46. Neu, D., Warsame, H. and Pedwell, K. (1998), "Managing public impressions: environmental disclosures in annual reports" in Accounting, Organizations and Society, Vol. 23, No. 3, pp. 265-82.
47. Nielsen, A.C. (2008), "A content analysis of analyst research: health care through the eyes of analysts" in Journal of Health Care Finance, Vol. 34, No. 3, pp. 66-90.
48. Orens, R. and Lybaert, N. (2007), "Does the financial analysts' usage of non-financial information influence the analysts' forecast accuracy? Some evidence from the Belgian sell-side financial analyst" in International Journal of Accounting, Vol. 42, No. 3, pp. 237-71.
49. Penrose, J.M. (2008), "Annual report graphic use: a review of the literature" in Journal of Business Communication, Vol. 45, No. 2, pp. 158-80.
50. Previts, G.J., Bricker, R.J., Robinson, T.R. and Young, S.J. (1994), "A content analysis of sell-side financial analyst company reports" in Accounting Horizons, Vol. 8, No. 2, pp. 55-70.
51. Ramnath, S., Rock, S. and Shane, P. (2008), "The financial analyst forecasting literature: a taxonomy with suggestions for further research" in International Journal of Forecasting, Vol. 24, No. 1, pp. 34-75.
52. Rogers, R.K. and Grant, J. (1997), "Content analysis of information cited in reports of sell-side financial analysts" in Journal of Financial Statement Analysis, Vol. 3, No. 1, pp. 17-31.
53. Schlenker, B.R. (1980), Impression Management: The Self-Concept, Social Identity, and Interpersonal Relations, Brooks-Cole, Belmont, CA.
54. Schneider, D.J. (1981), "Tactical self-presentations: toward a broader conception" in Tedeschi, J.T. (Ed.), Impression Management Theory and Social Psychological Research, Academic Press, New York, NY, pp. 23-40.
55. SRI International (1987), Investor Information Needs and the Annual Report, Financial Executives Research Foundation, Morristown, NJ.
56. Stevens, C.K. and Kristoff, A.L. (1995), "Making the right impression: afield study of applicant impression management during job interviews" in Journal of Applied Psychology, Vol. 80, No. 5, pp. 587-606.
57. Tsao, A. (2002), "When a stock's rating and target collide", Business Weekly Online, 25 April, p. 1.
58. Twedt, B. and Rees, L. (2012), "Reading between the lines: an empirical examination of qualitative attributes of financial analysts' reports" in Journal of Accounting and Public Policy, Vol. 31, No. 1, pp. 1-21.
59. Vergoossen, R. (1993), "The use of perceived importance of annual reports by investment analysts in The Netherlands" in European Accounting Review, Vol. 2, No. 2, pp. 219-44.
60. Wayne, S.J. and Ferris, G.R. (1990), "Influence tactics, affect, and exchange quality in supervisor-subordinate interactions: a laboratory experiment and field study" in Journal of Applied Psychology, Vol. 75, No. 5, pp. 487-99.
61. Westphal, J. and Clement, M. (2008), "Sociopolitical dynamics in relations between top managers and security analysts: favor rendering, reciprocity, and analyst stock recommendations" in The Academy of Management Journal, Vol. 51, No. 5, pp. 873-97.
62. Winchel, J. (2011), "The effect of ambiguity and two-sided argumentation on investor reaction to favorable analyst reports", available at:.
63. Womack, K.L. (1996), "Do brokerage analysts' recommendations have investment value?" in Journal of Finance, Vol. 51, No. 1, pp. 137-67.
64. Siconolfi, M. (1995), "Incredible 'buys': many companies press analysts to steer clear of negative ratings", The Wall Street Journal, 19 July, p. 1.