The importance of intangibles is straightforward for all market operators. Notwithstanding the explosion of the market bubble, businessmen, shareholders, analysts know well that intangible assets play a key role in today’s company value creation. Although it is difficult to understand the amount of this contribution and above all the value of these items, many researchers and practitioners, in recent years, have developed several models and methodologies to measure intangible assets or disclose them in the annual report or in other company documents (Intellectual Capital Statement and so on). In this respect, in 2002 the University of Ferrara in collaboration with the Italian Association of Financial Analysts (AIAF) has elaborated a model for measuring the level of disclosure about intangibles and representing this level in a Radar Diagram. The basic framework of this model is three-dimensional: it divides information between actual and forecast; it distinguishes five communication dimensions for intangibles (strategy and business model; innovation & IPR; human resources; organisation; customers and market); it catalogues companies according to diversified communication levels depending on the completeness and depth of disclosure on intangibles provided (“minimum” information; “reasoned” information; extended information). The methodology adopted in this study is a development and a refinement of that proposed in first instance by the University of Ferrara in collaboration with AIAF. The aim of this paper is to test this methodology by applying it in a European context to appreciate the level of information on intangibles disclosed by some relevant Italian, French, German and UK companies. We consider the companies listed in the local stock market composing the main market indexes (MIB30 and Midex; CAC 40; DAX 30; and FTSE 100), and exclude banks, insurance and financial services companies as well as holdings. 126 companies were eventually examined with the analysis focussing on 2001 annual reports. The results are set against the background of the conventional wisdom put forward by the international accounting theory with reference to these countries.
Scoring Company Disclosure on Intangibles: An Application of an Innovative Methodology in a European Perspective
ZAMBON, Stefano;
2007
Abstract
The importance of intangibles is straightforward for all market operators. Notwithstanding the explosion of the market bubble, businessmen, shareholders, analysts know well that intangible assets play a key role in today’s company value creation. Although it is difficult to understand the amount of this contribution and above all the value of these items, many researchers and practitioners, in recent years, have developed several models and methodologies to measure intangible assets or disclose them in the annual report or in other company documents (Intellectual Capital Statement and so on). In this respect, in 2002 the University of Ferrara in collaboration with the Italian Association of Financial Analysts (AIAF) has elaborated a model for measuring the level of disclosure about intangibles and representing this level in a Radar Diagram. The basic framework of this model is three-dimensional: it divides information between actual and forecast; it distinguishes five communication dimensions for intangibles (strategy and business model; innovation & IPR; human resources; organisation; customers and market); it catalogues companies according to diversified communication levels depending on the completeness and depth of disclosure on intangibles provided (“minimum” information; “reasoned” information; extended information). The methodology adopted in this study is a development and a refinement of that proposed in first instance by the University of Ferrara in collaboration with AIAF. The aim of this paper is to test this methodology by applying it in a European context to appreciate the level of information on intangibles disclosed by some relevant Italian, French, German and UK companies. We consider the companies listed in the local stock market composing the main market indexes (MIB30 and Midex; CAC 40; DAX 30; and FTSE 100), and exclude banks, insurance and financial services companies as well as holdings. 126 companies were eventually examined with the analysis focussing on 2001 annual reports. The results are set against the background of the conventional wisdom put forward by the international accounting theory with reference to these countries.I documenti in SFERA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
