Assessing the quality of disclosure on intangibles in the Spanish capital market

Emerald - Tập 17 Số 4 - Trang 305-313 - 2005
EmmaGarcía‐Meca1, IsabelMartínez1
1Department of Accounting and Finance, Facultad de Economía y Empresa, University of Murcia, Murcia, Spain

Tóm tắt

PurposeThe purpose of this study is to analyse the quality of disclosure on intangibles in presentations to analysts held by firms listed in the Spanish capital market. Given that quantification of the information provides a more precise and convincing message than qualitative disclosure, the information is measured by two indices, which are focused on the specificity of the disclosure.Design/methodology/approachThe reports of all presentations to financial analysts held by Spanish companies listed in the Madrid Stock Exchange are analysed during the year 2000 and 2001. The sample contains 257 reports.FindingsBriefly, the study finds that there are differences in the quality of the information reported to financial analysts in Spain, and that several factors, such as firm size and the levels of profitability and leverage, highly influence it.Practical implicationsThis study contributes to the literature by analysing the disclosure of the information on intangibles beyond the commonly used disclosure/no disclosure dichotomy. Consequently, this study introduces different indices in order to analyse not only the extent but also the specificity of disclosure.Originality/valueEstablishing the quality of overall disclosure on intangibles, as well as the categories on which the specificity is higher, should be relevant for management teams when they design their disclosure strategies. In addition, understanding why firms disclose information on intangibles to financial analysts and why its quality varies among them is also useful to the users of accounting information as well as to accounting policy makers.

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Emerald

Tập 17 Số 4

305-313

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