Skip to main content

Voluntary disclosure of intellectual capital items in roadshows and investor conferences: an empirical analysis of DAX30-companies

Zeitschrift für Planung & Unternehmenssteuerung volume 21, pages 255–275 (2010)Cite this article

Abstract

We analyze firms’ voluntary disclosure of intellectual capital in a setting of presentations to analysts and investors. Firms use presentations to analysts and investors as an additional means of reporting. Due to lesser restrictions of this kind of reporting and also due to the private channel disclosure setting of such presentations, firms are able to highlight certain issues which they think to be important for interpretation and forecasting of firm success. In such a setting we can assess the benefit-cost relation underlying these disclosure decisions. The sample consists of German DAX30 firms, which are analyzed for the years 2001, 2003, 2005, and 2007, resulting in a total of 271 observations. We calculate quantitative and qualitative disclosure indices and also analyze whether time, industry and type of presentation influence intellectual capital disclosure. Findings show that customer capital, human capital, and process capital are reported more often than other intellectual capital categories. Industry and type of presentation are strongly related to disclosure indices. There is also a weak significant relation between time and disclosure index. Overall, firms tend to prefer qualitative voluntary disclosure of intellectual capital and only carefully disclose quantitative data. This suggests that the benefit-cost relation of quantitative reporting is negative.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

References

  • Arbeitskreis “Immaterielle Werte im Rechnungswesen” der Schmalenbach-Gesellschaft für Betriebswirtschaft e. V. (2001). Kategorisierung und bilanzielle Erfassung immaterieller Werte. Der Betrieb, 54(19), 989–995.

    Google Scholar 

  • Arbeitskreis “Immaterielle Werte im Rechnungswesen” der Schmalenbach-Gesellschaft für Betriebswirtschaft e. V. (2005). Corporate reporting on intangibles—a proposal from a German background. Schmalenbach Business Review (SBR), 57(5), 65–100.

    Google Scholar 

  • Baiman, S., & Verrecchia, R. E. (1996). The relation among capital markets, financial disclosure, production efficiency, and insider trading. Journal of Accounting Research, 34(1), 1–22.

    Article  Google Scholar 

  • Barth, M. E., Clinch, G., & Shibano, T. (1999). International accounting harmonization and global equity markets. Journal of Accounting and Economics, 26(1–3), 201–235.

    Article  Google Scholar 

  • Boesso, G., & Kumar, K. (2007). Drivers of corporate voluntary disclosure. Accounting, Auditing & Accountability Journal, 20(2), 269–296.

    Article  Google Scholar 

  • Botosan, C. A. (1997). Disclosure level and the cost of equity capital. Accounting Review, 72(3), 323–349.

    Google Scholar 

  • Choi, Y.-S., O’Hanlon, J., & Pope, P. F. (2006). Conservative accounting and linear information valuation models. Contemporary Accounting Research, 23(1), 73–101.

    Article  Google Scholar 

  • Directive 2003/6/EC (2003). Directive 2003/6/EC of the European parliament and of the council of 28 January 2003 on insider dealing and market manipulation (market abuse). 2003/6/EC. European Union.

  • Ferguson, M. J., Lam, K. C. K., & Lee, G. M. (2002). Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong. Journal of International Financial Management and Accounting, 13(2), 125–152.

    Article  Google Scholar 

  • García-Meca, E., & Martinez, I. (2007). The use of intellectual capital information in investment decisions: An empirical study using analyst reports. International Journal of Accounting, 42(1), 57–81.

    Article  Google Scholar 

  • García-Meca, E., Parra, I., Larran, M., & Martínez, I. (2005). The explanatory factors of intellectual capital disclosure to financial analysts. European Accounting Review, 14(1), 63–94.

    Article  Google Scholar 

  • Gerpott, T. J., Thomas, S. E., & Hoffmann, A. P. (2008). Intangible asset disclosure in the telecommunications industry. Journal of Intellectual Capital, 9(1), 37–61.

    Article  Google Scholar 

  • Günther, T. (1997). Unternehmenswertorientiertes Controlling. München: Franz Vahlen.

    Google Scholar 

  • Günther, T., Beyer, D., & Menninger, J. (2005). Does relevance influence reporting about environmental and intangible success factors? Empirical results from a survey of executives from intangible-driven industries. Schmalenbach Business Review, 57(5), 101–138.

    Google Scholar 

  • Holland, J., & Johanson, U. (2003). Value-relevant information on corporate intangibles—creation, use, and barriers in capital markets—“between a rock and a hard place”. Journal of Intellectual Capital, 4(4), 465–486.

    Article  Google Scholar 

  • Kirby, A. J. (1988). Trade associations as information exchange mechanisms. RAND Journal of Economics (RAND Journal of Economics), 19(1), 138–146.

    Article  Google Scholar 

  • Kirchner-Khairy, S. (2006). Mess- und Bewertungskonzepte immaterieller Ressourcen im kybernetischen Controlling-Kreislauf. Dresden: TU Dresden.

    Google Scholar 

  • Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research, 45(2), 385–420.

    Article  Google Scholar 

  • Leuz, C., & Wysocki, P. D. (2008). Economic consequences of financial reporting and disclosure regulation: a review and suggestions for future research. SSRN eLibrary.

  • Lev, B. (2001). Intangibles: management, measurement, and reporting. Washington: Brookings Institution.

    Google Scholar 

  • Marston, C. (2008). Investor relations meetings: evidence from the top 500 UK companies. Accounting & Business Research, 38(1), 21–48.

    Article  Google Scholar 

  • Patten, D. M. (1991). Exposure, legitimacy, and social disclosure. Journal of Accounting & Public Policy, 10(4), 297–308.

    Article  Google Scholar 

  • Regulation (EC) No. 1606/2002 (2002). Regulation (EC) No. 1606/2002 of the European parliament and of the council of 19 July 2002 on the application of international accounting standards.

  • Riegler, C., & Kristandl, G. (2004). Value Reporting in österreichischen Unternehmen – Beobachtung des Berichtverhaltens von ATX und ATX-Prime Unternehmen. In G. Seicht (Ed.), Jahrbuch für Controlling und Rechnungswesen 2004 (pp. 245–267). Wien: LexisNexis.

    Google Scholar 

  • Shleifer, A., & Wolfenzon, D. (2002). Investor protection and equity markets. Journal of Financial Economics, 66(1), 3–27.

    Article  Google Scholar 

  • Striukova, L., Unerman, J., & Guthrie, J. (2008). Corporate reporting of intellectual capital: Evidence from UK companies. British Accounting Review, 40(4), 297–313.

    Article  Google Scholar 

  • Tasker, S. C. (1998). Bridging the information gap: quarterly conference calls as a medium for voluntary disclosure. Review of Accounting Studies, 3(1/2), 137–167.

    Article  Google Scholar 

  • Verrecchia, R. E. (1983). Discretionary disclosure. Journal of Accounting & Economics, 5(3), 179–194.

    Article  Google Scholar 

  • Verrecchia, R. E. (1990). Information quality and discretionary disclosure. Journal of Accounting & Economics, 12(4), 365–380.

    Article  Google Scholar 

  • Verrecchia, R. E. (2001). Essays on disclosure. Journal of Accounting & Economics, 32(1-3), 97–180.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Technische Universität Dresden, 01062, Dresden, Germany

    Frank Schiemann, Kai Richter & Thomas Günther

Authors
  1. Frank Schiemann
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kai Richter
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Thomas Günther
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Frank Schiemann.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Schiemann, F., Richter, K. & Günther, T. Voluntary disclosure of intellectual capital items in roadshows and investor conferences: an empirical analysis of DAX30-companies. Z Plan Unternehmenssteuerung 21, 255–275 (2010). https://doi.org/10.1007/s00187-010-0114-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00187-010-0114-3

Keywords

  • Voluntary disclosure
  • Intellectual capital
  • Private channel communication
  • Non-financials
  • Value reporting