CAPIC REVIEW

Journal of Accounting, Auditing and Business Management

ISSN 0718-4662

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Vol. 17 (2019): CAPIC REVIEW
Investigation

Value relevance of intangibles: pre-IFRS and IFRS analysis in the argentine capital market

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  • Cecilia Ficco,
  • Gustavo Sader
Cecilia Ficco
Universidad Nacional de Río Cuarto
DOI: https://doi.org/10.35928/cr.vol17.2019.54
Categories

Published 2020-07-07

Keywords

  • intangible assets,
  • intellectual capital,
  • argentine capital market,
  • IFRS,
  • value relevance

How to Cite

Ficco, C., & Sader, G. (2020). Value relevance of intangibles: pre-IFRS and IFRS analysis in the argentine capital market. CAPIC REVIEW, 17, 1–15. https://doi.org/10.35928/cr.vol17.2019.54
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Abstract

The objective of this paper is to analyze the effect of the adoption of the IFRS on the relevance that the Argentine capital market assigns to the financial information on intangible assets and to the non-financial information referred to the intellectual capital of listed companies.

The analysis is carried out applying price models based on Ohlson (1995), with data collected directly from original sources and corresponding to the period 2009-2015.

The results reveal that the adoption of IFRS produced changes in the value relevance of intangible assets, but it has not impacted on the value relevance of intellectual capital. In addition, they show that human and structural dimensions are not considered by investors, in any of the two stages (IFRS and pre-IFRS), while structural capital has a negative impact on prices in both periods.

These findings are consistent with those provided by previous studies and, in particular, those related to intellectual capital, are similar to those obtained for low-developed countries, where there is no significant evidence that support its value relevance. They contribute, in this way, to increase the existing evidence regarding the role of intangibles in the external valuation of companies and the implications of the application of the IASB's regulatory framework, which is particularly limited for underdeveloped markets.

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