Intangibles Disclosure and Capital-Raising in Australia: An Analysis of Information Intensity

Hazianti Abdul Halim () and Hartini Jaafar
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Hazianti Abdul Halim: Department of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia
Hartini Jaafar: Department of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, 35900 Tanjung Malim, Perak, Malaysia

Asian Academy of Management Journal of Accounting and Finance (AAMJAF), 2012, vol. 8, issue 2, 69–91

Abstract: After the adoption of AASB 138 in 2005, it is argued that information on intangibles is less visible in Australian companies' financial reports. In view of this limitation, this study examines the nature, extent and intensity of intangibles disclosure by listed companies in Australia. We establish, explore and demonstrate the concept of information intensity which indicates the strength of intangibles information presented by firms. We analyse the narrative sections in annual reports and prospectuses of 30 companies from the Top 200 Australian companies. The overall findings suggest that capital-raising companies make intangibles information visible in both annual reports and prospectuses by signaling information through pictures and repetition of intangibles information which indicates more intense signal. However, we find that the level of disclosure in prospectuses is much lower than the disclosure in the narrative sections in the annual reports. We argue that disclosure in prospectuses is subject to more stringent reporting and disclosure obligations as compared to narrative sections in annual reports. As a result, more intangibles information is observed in annual reports.

Keywords: intangibles; Australia; capital raising; voluntary disclosure; impression management (search for similar items in EconPapers)
Date: 2012
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