search query: @author Amir, E. / total: 6
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| Author: | Amir, E. Lev, B. Sougiannis, T. |
| Title: | Do financial analysts get intangibles? |
| Journal: | European Accounting Review
2003 : VOL. 12:4, p. 635-659 |
| Index terms: | Accounting Intangible assets Earnings Financial reporting Forecasting |
| Language: | eng |
| Abstract: | It is widely agreed that corporate financial reports provide deficient information about intangible assets. However, investors are exposed to substantial information beyond financial reports. It is asked in the study, to what extent do these non-financial report sources compensate for the intangibles-related deficiencies of financial statements? To address this question it is assumed that analysts' forecasts of earnings reflect, among other things, the beyond-financial-report information sought, and simultaneous equations are used to estimate the incremental information contribution of earnings forecasts over the information contained in financial reports. The study focuses particularly on intangibles-related information, by comparing analysts' contribution for firms with and without R&D. It is found that, to some extent, analysts do compensate for the intangibles-related information deficiencies of financial reports, but definitely not for all the deficiencies. Accordingly, identified are the 'weakest links'- industries in which analysts do not get intangibles. |
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