Accounting, Intangible Assets, Stock Market Activity, and Measurement and Disclosure Policy: Views from the UK
Dedman, Elisabeth, Mouselli, Sulaiman, Shen, Yun and Stark, Andrew W.. (2009) Accounting, Intangible Assets, Stock Market Activity, and Measurement and Disclosure Policy: Views from the UK. Abacus, Vol.45 (No.3). pp. 312-341. ISSN 1467-6281Full text not available from this repository.
Official URL: http://dx.doi.org/10.1111/j.1467-6281.2009.00291.x
This paper considers the impact of UK practices with respect to the measurement and disclosure of intangible assets, focusing on RD activities. We first update prior UK work relating RD activities to market prices. Second, given the clearly identified role of disclosure outside of the financial statements in helping market participants value RD expenditures, we consider whether market forces are generally sufficient to ensure adequate disclosures with respect to intangibles by considering the cases of two biotechnology firms involved in the issuance of misleading disclosures. Within this context, we consider how disclosure regulation and enforcement mechanisms have evolved in recent years, and how this evolution has likely been affected by our ‘scandal’ cases. Our conclusions are that the case of the UK does not give rise to any wide-scale concerns about the economic ill-effects caused by the current state of recognition and disclosure with respect to expenditures on intangibles. Further, market forces are unlikely to be sufficient in ensuring honest and timely disclosures with respect to intangibles, but the combination of official regulation and voluntary self-regulation appears to have stemmed the tide of any such disclosure scandals in the UK.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HF Commerce|
|Divisions:||Faculty of Social Sciences > Warwick Business School > Accounting
Faculty of Social Sciences > Warwick Business School
|Journal or Publication Title:||Abacus|
|Publisher:||Wiley-Blackwell Publishing Ltd.|
|Number of Pages:||30|
|Page Range:||pp. 312-341|
|Access rights to Published version:||Restricted or Subscription Access|
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