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Outperforming markets: IC and the long-term performance of Japanese IPOs

Nielsen, C., Rimmel, G. ORCID: and Yosano, T. (2015) Outperforming markets: IC and the long-term performance of Japanese IPOs. Accounting Forum, 39 (2). pp. 83-96. ISSN 0155-9982

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To link to this item DOI: 10.1016/j.accfor.2015.04.001


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.

Item Type:Article
Divisions:Henley Business School > Business Informatics, Systems and Accounting
ID Code:73606
Uncontrolled Keywords:Voluntary disclosures; Intellectual capital; IPO prospectuses; Long-term performance; Bid–ask spread; Japan


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