Value relevance of information in hi-tech industries in Australia : accounting information and intangible asset disclosures

Abayadeera, Nadana 2010, Value relevance of information in hi-tech industries in Australia : accounting information and intangible asset disclosures, Global review of accounting and finance, vol. 1, no. 1, pp. 77-99.

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Title Value relevance of information in hi-tech industries in Australia : accounting information and intangible asset disclosures
Author(s) Abayadeera, Nadana
Journal name Global review of accounting and finance
Volume number 1
Issue number 1
Start page 77
End page 99
Total pages 23
Publisher World Business Institute
Place of publication Melbourne, Vic.
Publication date 2010-09
ISSN 1838-1413
1838-5915
Keyword(s) accounting
Summary The main objective of this study is to test the value relevance of financial and non-financial information in high-tech industries in Australia. Ninety-one companies were selected from the sectors of Pharmaceuticals, Biotechnology and Life Sciences; Technology, Hardware and Equipment; and Telecommunication Services of ASX for the analysis. Both financial and non-financial sections of annual reports were scrutinized in order to obtain data for the analysis. The unaudited sections of annual reports were particularly analysed using NVivo to obtain the word-count of intangible assets. Ohlson’s (1995) Equity Valuation Model (modified for the intangible assets disclosures) was explicitly applied to examine the value relevance of financial and non-financial information. The overall results provide evidence that book value is the most significant factor and earnings are the least significant factor in deciding share prices in high-tech industries in Australia. This finding supports the previous studies that showed value relevance declined in earnings but increased in book value. This research proved that voluntary disclosures of intangible assets are value relevant, providing support for the previous US and Australian studies and the conclusion that investors probably increasingly rely upon alternative information sources.
Language eng
Field of Research 150103 Financial Accounting
Socio Economic Objective 910406 Technological and Organisational Innovation
HERDC Research category C1.1 Refereed article in a scholarly journal
Persistent URL http://hdl.handle.net/10536/DRO/DU:30053039

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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