Tangible and intangible non-current assets: Evidence of information content during economic crisis period

Zaleha Abdul Shukor, Hamezah Md Nor, Muhd Kamil Ibrahim, Jagjit Kaur

Research output: Contribution to journalArticle

Abstract

In this paper, we investigate the information content of non-current assets (NCA) among firms listed on the main board of Bursa Malaysia. Specifically, we investigate the information content of tangible and intangible NCA during the economic crisis period of 1997-1998. Our empirical analysis uses time-varying and fixed effects models for the period 1995-1999. We measure information content based on the association of analysts' earnings forecasts errors (AFE) with both capitalized tangible and intangible NCA. We find evidence of higher information content in tangible NCA compared to intangible NCA during the Asian economic crisis period of 1997-1998. Our evidence is consistent with the assumption that tangible assets are more reliable compared to intangible assets for prediction of expected cash flows during economic crisis periods.

Original languageEnglish
Pages (from-to)115-137
Number of pages23
JournalContemporary Studies in Economic and Financial Analysis
Volume86
DOIs
Publication statusPublished - 2006

Fingerprint

Economic crisis
Information content
Assets
Intangibles
Cash flow
Empirical analysis
Asian economic crisis
Fixed effects model
Prediction
Malaysia
Time-varying
Forecast error
Analysts' earnings forecasts
Intangible assets

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

Cite this

Tangible and intangible non-current assets : Evidence of information content during economic crisis period. / Abdul Shukor, Zaleha; Md Nor, Hamezah; Kamil Ibrahim, Muhd; Kaur, Jagjit.

In: Contemporary Studies in Economic and Financial Analysis, Vol. 86, 2006, p. 115-137.

Research output: Contribution to journalArticle

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