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Do the financial statements of intangible-intensive companies hold less information content for investors?

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  • Ian Fraser
  • Heather Tarbert
  • Kai Hong Tee

Abstract

This study uses the event study method to compare the information content of annual accounting releases in sectors that differ in respect of the proportion of market value that may be attributed to intangibles. The results demonstrate that there are differences between industrial sectors in the share price reaction to accounting events and that this reaction appears to be much less significant in sectors where the investment in intangible assets is relatively high.

Suggested Citation

  • Ian Fraser & Heather Tarbert & Kai Hong Tee, 2009. "Do the financial statements of intangible-intensive companies hold less information content for investors?," Applied Financial Economics, Taylor & Francis Journals, vol. 19(17), pages 1433-1438.
    • Handle: RePEc:taf:apfiec:v:19:y:2009:i:17:p:1433-1438
    DOI: 10.1080/09603100902902212
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    References listed on IDEAS

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    Cited by:

    1. E.A. Osadchy & E.M. Akhmetshin & E.F. Amirova & T.N. Bochkareva & Yu.Yu. Gazizyanova & A.V. Yumashev, 2018. "Financial Statements of a Company as an Information Base for Decision-Making in a Transforming Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 339-350.
    2. Robert Rieg & Ute Vanini, 2023. "Value relevance of voluntary intellectual capital disclosure: a meta-analysis," Review of Managerial Science, Springer, vol. 17(7), pages 2587-2631, October.
    3. Neeraj J. Gupta & Joseph Golec, 2012. "Do Investors Use Customer Metrics To Value High Growth Service Firms?," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(2), pages 1-19.

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