Value‐relevant information on corporate intangibles – creation, use, and barriers in capital markets – “between a rock and a hard place”

The article reveals a need for greater understanding and use of corporate intellectual capital (IC) information within two connected capital market areas. Firstly with regard to the conceptualisation and valuation process these capital market agents (analysts and fund managers) conduct. Secondly, within the capital market agents' own value creation chain. The concept of the value creation chain is combined with an analysis of the barriers faced by capital market agents represented by fund managers and analysts. These barriers are proposed to comprise knowledge, uncertainty, ownership and management problems. In addition, cultural pressures within analyst and fund manager communities are viewed as contributors to information barriers. Such problems are exacerbated by additional market induced problems of severe time constraints and conflicts of interest.

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