The Value Relevance of Intangible Assets and the Mandatory Adoption of IFRS
Morricone, Serena and Oriani, Raffaele and Sobrero, Maurizio (2009) The Value Relevance of Intangible Assets and the Mandatory Adoption of IFRS. [Working Paper]. Social Science Electronic Pub. p. 42. SSRN Working Paper Series (Submitted)
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Using a sample of Italian publicly traded firms in the period of 1996-2006, we analyze whether and to what extent the mandatory adoption of IFRS has affected the value relevance of intangible assets. Prior literature has claimed that IFRS adoption should improve the quality of accounting information and reduce information asymmetries. We find a statistically significant decrease in the value relevance of intangible assets, and in particular of goodwill, after the IFRS adoption. In contrast, in the Italian setting investors’ evaluation of R&D expenditures seems not to be value relevant under either accounting standards.
|Item Type:||Report / Paper (Working Paper)|
|Research documents and activity classification:||Working Papers > Non-Refereed Working Papers / of national relevance only|
|Divisions:||Department of Business and Management|
|Uncontrolled Keywords:||Intangible assets, IFRS adoption, goodwill, impairment test, R&D, IAS 38|
|MIUR Scientific Area:||Area 09 - Industrial and Information Engineering > ING-IND/35 Engineering and Management|
|Deposited By:||Maria Teresa Nistico|
|Deposited On:||10 Dec 2010 15:51|
|Last Modified:||10 Dec 2010 15:51|
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