Assessing the quality of disclosure on intangibles in the Spanish capital market

Purpose – The purpose of this study is to analyse the quality of disclosure on intangibles in presentations to analysts held by firms listed in the Spanish capital market. Given that quantification of the information provides a more precise and convincing message than qualitative disclosure, the information is measured by two indices, which are focused on the specificity of the disclosure.Design/methodology/approach – The reports of all presentations to financial analysts held by Spanish companies listed in the Madrid Stock Exchange are analysed during the year 2000 and 2001. The sample contains 257 reports.Findings – Briefly, the study finds that there are differences in the quality of the information reported to financial analysts in Spain, and that several factors, such as firm size and the levels of profitability and leverage, highly influence it.Practical implications – This study contributes to the literature by analysing the disclosure of the information on intangibles beyond the commonly used disc...