Firm‐specific determinants of intangibles reporting: evidence from the Portuguese stock market

Abstract

Purpose -This paper seeks to identify factors that influence the voluntary disclosure of intangibles information in annual reports of Portuguese listed companies. Design/methodology/approach -An index of the voluntary disclosure of intangibles is constructed based on analysis of the Management Report and Chairman's Letter of all 56 companies listed on Euronext Lisbon at 31 December 2003. Several hypotheses about associations between that index and eight firm-specific variables are tested. Findings -The voluntary reporting of intangibles is found to be influenced significantly by size, ownership concentration, type of auditor, industry and listing status in univariate analysis; and by size, industry, type of auditor, and ownership concentration (and listing status to a lesser extent) in multivariate analyses.Research limitations/implications -This study focuses on annual reports only, and is cross-sectional. The use of content analysis and the subjective judgment involved in constructing the index cannot be view uncritically. The small sample size is inevitable because of the small Portuguese capital market. Practical implications -Accounting regulators will be better able to understand the factors that explain the voluntary disclosure of intangibles by firms and use this in developing future recommendations. Originality/value -The paper validates some previous research and also provides insights to the firm-specific factors that explain voluntary disclosure of intangibles by companies operating in the small share market of a European country in which capital market fund raising is not regarded to be an important source of financing.

Intellectual capital disclosure determinants and its effects on the market capitalization: evidence from Indonesian listed companies

“…The result is consistent with some previous studies conducted by [11], [19], [12] and [13], which shows the company size has significant positive effects on the intellectual capital disclosure. But this result is in contrast to study conducted by [20].…”

“…The result is consistent with the study by [13] and [19] which also failed to support the influence of profitability towards ICD.…”

Intellectual Capital Reporting in Malaysian Technology Industry

“…This finding has been supported by several studies (e.g. bozzolan et al 2003;bozzolan et al 2006;Oliveira et al 2006) that determined that "high-tech." or knowledge intensive industries are more likely to provide information about their knowledge assets in the annual reports.…”

“…Additionally, Oliveira et al (2006) divided the firms characteristics into three groups structural variables, including firm size and type of auditor; performance variables, including profitability; and market variables, including industry. based on the above discussion, it is obvious that the factors of intellectual capital disclosure are not evidently known, yet.…”

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