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Are accounting choices for intangible assets informative or opportunistic? Evidence from Poland

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  • Grzybek, Olga

Abstract

This study investigates accounting policy choices for intangible assets and their determinants within the framework of positive accounting theory (PAT). A composite income strategy measure of five accounting policies is calculated. Determinants of an income strategy are analyzed with a cross-sectional sample of 117 Polish-listed companies for the year 2018 in a setting that is highly susceptible to managerial opportunism. The results indicate firms use more income-increasing policies and emphasize that income strategy incentives differ depending on firms’ proportion of intangible resources measured by the market-to-book ratio. Contrary to the PAT hypotheses, accounting choices in firms with high market-to-book value do not seem self-serving. Instead, they are informative and correspond to the actual intangible value created by those companies. Moreover, common opportunistic incentives do not explain the accounting choices of low market-to-book value firms.

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  • Grzybek, Olga, 2023. "Are accounting choices for intangible assets informative or opportunistic? Evidence from Poland," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:jiaata:v:51:y:2023:i:c:s1061951823000289
    DOI: 10.1016/j.intaccaudtax.2023.100549
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