Article

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

Citation

Fraser I, Tarbert H & Tee KH (2009) Do the financial statements of intangible-intensive companies hold less information content for investors?. Applied Financial Economics, 19 (17), pp. 1433-1438. https://doi.org/10.1080/09603100902902212

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.

Keywords
Accounting; difference; EVENT; financial; financial statements; Information; market; method; PROPORTION; RELEASE; respect; SECTOR; VALUE

Journal
Applied Financial Economics: Volume 19, Issue 17

StatusPublished
Publication date31/12/2009
PublisherTaylor & Francis
ISSN0960-3107