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Unveiling Intangible Assets: Exploring Voluntary Disclosure and Its Interaction with Accounting Conservatism and Analyst Attention on Financing Constraints

Author

Listed:
  • Congrong Li

    (School of Economics and Management, Northeast Forestry University, Harbin 150040, China)

  • Zhe Ning

    (School of Economics and Management, Northeast Forestry University, Harbin 150040, China)

Abstract

This paper examines the relationship between the voluntary disclosure of intangible assets and financing constraints using a sample of 2850 listed companies from 2017 to 2021. Additionally, we examine the moderating effects of prudence in accounting and the attention given to the disclosures by analysts from both an internal and an external perspective. The results show that voluntarily disclosing intangible assets helps to alleviate a firm’s financing constraints, with more significant effects observed in state-owned enterprises and companies listed on the Growth Enterprise Market index than for private enterprises and those listed on the main board of the Chinese capital market. Further, conservatism in accounting and attention given by financial analysts both positively moderate this relationship. The theoretical and empirical insights provided by this study should help listed companies in China to enhance the quality of their voluntary intangible asset disclosures, while also helping to mitigate financing constraints.

Suggested Citation

  • Congrong Li & Zhe Ning, 2024. "Unveiling Intangible Assets: Exploring Voluntary Disclosure and Its Interaction with Accounting Conservatism and Analyst Attention on Financing Constraints," IJFS, MDPI, vol. 12(4), pages 1-21, November.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:4:p:111-:d:1514503
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    References listed on IDEAS

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    2. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    3. Wang, Xin & Shan, Yuan George & Song, Jianbo, 2023. "Customer information disclosure and corporate financing constraints," International Review of Financial Analysis, Elsevier, vol. 89(C).
    4. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," The Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
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