Recognition and Disclosure of Intangible Assets - A Meta-Analysis Review

57 Pages Posted: 13 Feb 2018  

Anne JENY

ESSEC Business School; ESSEC Business School - Department of Accounting and Management Control

Rucsandra Moldovan

Concordia University, Quebec - Department of Accountancy

Date Written: February 8, 2018

Abstract

The knowledge- and Internet-based economy demands a re-examination of the accounting treatment for intangibles and a thorough understanding of the results on this topic. We review the literature on internally developed intangible assets using meta-analysis techniques which allow us to highlight the consensus and areas of disagreement in quantitative empirical results. We find relatively robust positive meta-relationships between (1) firm size and intangible-related disclosure, (2) R&D expenses and the firm’s stock market returns, and (3) R&D expenses and firm performance volatility. Some relations often cited in the literature do not seem to hold, namely the correlations of R&D expense with analyst earnings forecast errors and with share price. However, we note that after considering over one hundred accounting papers, only 35 percent meet the basic criteria to permit quantitative aggregation of results via meta-analysis. Even when aggregation is possible, the studies are often heterogeneous, therefore denying a reliable interpretation of averages.

Keywords: Intangible assets; Research and development; Capitalization; Disclosure; Quantitative literature review; Meta-analysis

JEL Classification: M4

Suggested Citation

JENY, Anne and Moldovan, Rucsandra, Recognition and Disclosure of Intangible Assets - A Meta-Analysis Review (February 8, 2018). Available at SSRN: https://ssrn.com/abstract=3120397 or http://dx.doi.org/10.2139/ssrn.3120397

Anne JENY (Contact Author)

ESSEC Business School ( email )

Av Bernard Hirsch
BP 50105
Cergy-Pontoise, 95021
France

ESSEC Business School - Department of Accounting and Management Control ( email )

Av Bernard Hirsch
BP 50105
Cergy-Pontoise, 95021
France

Rucsandra Moldovan

Concordia University, Quebec - Department of Accountancy ( email )

Montreal, Quebec H3G 1M8
Canada
+1-514-848-2424 ext 2528 (Phone)

HOME PAGE: http://https://sites.google.com/site/rucsandramoldovan

Register to support our free research

Register

Paper statistics

Downloads
57
rank
329,179
Abstract Views
166
PlumX