Complexity is never simple: Intangible intensity and analyst accuracy

We examine the relationship between intangible intensity and the accuracy of analyst forecasts. Using an international sample of 2,200 firms during 2000–2016, we show that analyst accuracy decreases significantly when intangible intensity grows. In exploring the determinants of this effect, we disti...

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Detalhes bibliográficos
Autores: Ferrer, Elena, Santamaría, Rafael, Suárez Suárez, Nuria
Formato: artículo
Fecha de publicación:2020
País:España
Recursos:Universidad Autónoma de Madrid
Repositorio:Biblos-e Archivo. Repositorio Institucional de la UAM
Idioma:inglés
OAI Identifier:oai:repositorio.uam.es:10486/695400
Acesso em linha:http://hdl.handle.net/10486/695400
https://dx.doi.org/10.1177/2340944420931871
Access Level:acceso abierto
Palavra-chave:Accuracy of analyst forecasts
cost of equity
governance mechanisms
intangible intensity
Economía
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spelling Complexity is never simple: Intangible intensity and analyst accuracyFerrer, ElenaSantamaría, RafaelSuárez Suárez, NuriaAccuracy of analyst forecastscost of equitygovernance mechanismsintangible intensityEconomíaWe examine the relationship between intangible intensity and the accuracy of analyst forecasts. Using an international sample of 2,200 firms during 2000–2016, we show that analyst accuracy decreases significantly when intangible intensity grows. In exploring the determinants of this effect, we distinguish between firm risk and the risk associated with intangibles. Our results reveal the role of financial reporting quality, ownership structure, and institutional quality in moderating the relationship between intangible intensity and analyst accuracy. Analyst forecast accuracy acts as a channel through which the higher levels of information asymmetry associated with intangible intensity affect the cost of equity. Our results are robust to different intangible intensity measures; mandatory changes in financial reporting standards; the implementation of transparency rules in certain industry sectors; and financial crisis periods. We have devised alternative econometric tools that deal with potential sample selection bias and the dynamics of our empirical model.The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: E. Ferrer acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (Project ECO2016-77631-R). N. Suárez acknowledges financial support from the Spanish Ministry of Economy and Competitiveness (Project ECO2017-85356-P).SAGEDepartamento de Financiación e Investigación ComercialFacultad de Ciencias Económicas y Empresariales20202020-07-02research articlehttp://purl.org/coar/resource_type/c_2df8fbb1VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10486/695400https://dx.doi.org/10.1177/2340944420931871reponame:Biblos-e Archivo. Repositorio Institucional de la UAMinstname:Universidad Autónoma de MadridInglésengopen accesshttp://purl.org/coar/access_right/c_abf2info:eu-repo/semantics/openAccessoai:repositorio.uam.es:10486/6954002026-06-23T12:46:27Z
dc.title.none.fl_str_mv Complexity is never simple: Intangible intensity and analyst accuracy
title Complexity is never simple: Intangible intensity and analyst accuracy
spellingShingle Complexity is never simple: Intangible intensity and analyst accuracy
Ferrer, Elena
Accuracy of analyst forecasts
cost of equity
governance mechanisms
intangible intensity
Economía
title_short Complexity is never simple: Intangible intensity and analyst accuracy
title_full Complexity is never simple: Intangible intensity and analyst accuracy
title_fullStr Complexity is never simple: Intangible intensity and analyst accuracy
title_full_unstemmed Complexity is never simple: Intangible intensity and analyst accuracy
title_sort Complexity is never simple: Intangible intensity and analyst accuracy
dc.creator.none.fl_str_mv Ferrer, Elena
Santamaría, Rafael
Suárez Suárez, Nuria
author Ferrer, Elena
author_facet Ferrer, Elena
Santamaría, Rafael
Suárez Suárez, Nuria
author_role author
author2 Santamaría, Rafael
Suárez Suárez, Nuria
author2_role author
author
dc.contributor.none.fl_str_mv Departamento de Financiación e Investigación Comercial
Facultad de Ciencias Económicas y Empresariales
dc.subject.none.fl_str_mv Accuracy of analyst forecasts
cost of equity
governance mechanisms
intangible intensity
Economía
topic Accuracy of analyst forecasts
cost of equity
governance mechanisms
intangible intensity
Economía
description We examine the relationship between intangible intensity and the accuracy of analyst forecasts. Using an international sample of 2,200 firms during 2000–2016, we show that analyst accuracy decreases significantly when intangible intensity grows. In exploring the determinants of this effect, we distinguish between firm risk and the risk associated with intangibles. Our results reveal the role of financial reporting quality, ownership structure, and institutional quality in moderating the relationship between intangible intensity and analyst accuracy. Analyst forecast accuracy acts as a channel through which the higher levels of information asymmetry associated with intangible intensity affect the cost of equity. Our results are robust to different intangible intensity measures; mandatory changes in financial reporting standards; the implementation of transparency rules in certain industry sectors; and financial crisis periods. We have devised alternative econometric tools that deal with potential sample selection bias and the dynamics of our empirical model.
publishDate 2020
dc.date.none.fl_str_mv 2020
2020-07-02
dc.type.none.fl_str_mv research article
http://purl.org/coar/resource_type/c_2df8fbb1
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/10486/695400
https://dx.doi.org/10.1177/2340944420931871
url http://hdl.handle.net/10486/695400
https://dx.doi.org/10.1177/2340944420931871
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv SAGE
publisher.none.fl_str_mv SAGE
dc.source.none.fl_str_mv reponame:Biblos-e Archivo. Repositorio Institucional de la UAM
instname:Universidad Autónoma de Madrid
instname_str Universidad Autónoma de Madrid
reponame_str Biblos-e Archivo. Repositorio Institucional de la UAM
collection Biblos-e Archivo. Repositorio Institucional de la UAM
repository.name.fl_str_mv
repository.mail.fl_str_mv
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