Abstract
This article studies the effects of disclosure practices of Japanese IPO prospectuses on long-term stock performance and bid–ask spread, as a proxy for cost of capital, after a company is admitted to the stock exchange. A disclosure index methodology is applied to 120 IPO prospectuses from 2003. Intellectual capital information leads to significantly better long-term performance against a reference portfolio, and is thus important to the capital market. Further, superior disclosure of IC reduces bid–ask spread in the long-term, indicating that such disclosures are important in an IPO setting. Analysts and investors can attain higher long-term returns by understanding IC.
Originalsprog | Engelsk |
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Tidsskrift | Accounting Forum |
Vol/bind | 39 |
Udgave nummer | 2 |
Sider (fra-til) | 83–96 |
ISSN | 0155-9982 |
DOI | |
Status | Udgivet - 1 maj 2015 |