Intangible Values in Financial Accounting and Reporting An Analysis from the Perspective of Financial Analysts

Intangible Values in Financial Accounting and Reporting
An Analysis from the Perspective of Financial Analysts

DISSERTATION
of the University of St. Gallen,
School of Management,
Economics, Law, Social Sciences
and International Affairs
to obtain the title of
Doctor of Philosophy in Management

submitted by

Stephan Grüber
from
Germany

Approved on the application of

Prof. Dr. Peter Leibfried
and
Prof. Dr. Dirk Schäfer

Dissertation no. 4274
Springer Gabler, Wiesbaden 2014


The University of St. Gallen, School of Management, Economics, Law, Social
Sciences and International Affairs hereby consents to the printing of the present
dissertation, without hereby expressing any opinion on the views herein expressed.

St. Gallen, May 19, 2014

The President:

Prof. Dr. Thomas Bieger


Intangible Values in Financial
Accounting and Reporting



Stephan Grüber

Intangible Values in
Financial Accounting
and Reporting
An Analysis from the Perspective
of Financial Analysts
With a Foreword by Prof. Dr. Peter Leibfried


Stephan Grüber
St. Gallen, Switzerland

Dissertation, University of St. Gallen, Switzerland

ISBN 978-3-658-06549-2
DOI 10.1007/978-3-658-06550-8

ISBN 978-3-658-06550-8 (eBook)

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;
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Foreword

V

FOREWORD
Even though intangible values have continuously become significant value drivers of
companies in today’s economy, financial accounting and reporting still lacks to
properly incorporate and to report such values. Despite the ongoing debate throughout
the past decades, a universal solution inside or outside of the traditional information
means has not yet been developed. As a consequence, financial accounting and
reporting still provides an incomplete picture of an entity’s true resources and claims.
While it is necessary to acknowledge that financial accounting and reporting has
inherent limitations and is not supposed to present absolute data, further analysis is
required to better understand and to potentially close the information gap. In this
thesis, Stephan Grüber focuses on the information use of financial analysts, one of the
primary users of IFRSs. He investigates how financial analysts utilize and incorporate
information on intangible values in their decision-making processes and whether such
information influences decisions. In addition, the study examines the preferences of
financial analysts in regard to accounting for and reporting intangibles in the future.
Upon outlining the fundamentals of financial accounting and reporting, Stephan
examines the foundations and challenges of intangible values and provides an
overview of concepts introduced to improve the accounting and reporting of
intangibles. As a next step, he distinguishes various groups of financial analysts and
their decision-making objectives, such as buy- and sell-side analysts and equity and
fixed income analysts. Chapter 5 represents the main body of this thesis, presenting
and discussing two empirical studies. The first part describes the results of a content
analysis of sell-side research reports, offering insights into the information use of sellside analysts. The second part analyzes the results of a web-based experimental survey
with over 1,100 financial analysts, focusing on the importance of information of
intangibles for their decision-making.
The present analysis offers detailed and comprehensive evidence on the actual
information use and preferences of financial analysts, contributing to an improved

understanding of the user perspective in financial accounting and reporting, i.e. what
users effectively require with respect to information on intangible values. Hence, this
thesis may not only be valuable to individuals in academia, but is also useful for


VI

Foreword

practitioners and executives focusing on corporate communication. In addition, the
results may further provide financial analysts with stimulating self-insight regarding
their decision-making. I therefore wish this thesis to be widely read and accepted by a
broad audience.

St. Gallen, June 2014
Prof. Dr. Peter Leibfried, CPA, MBA
Managing Director of the Institute of Accounting, Control and Auditing (ACA-HSG)
at the University of St.Gallen and doctoral advisor of Stephan Grüber


Acknowledgements

VII

ACKNOWLEDGEMENTS
The present thesis is the result of my Ph.D. studies at the University of St. Gallen
(HSG) in Switzerland. It was submitted and approved to obtain the title Doctor of
Philosophy in Management.
Throughout the course of my studies, there has been much support from many
different people and I would like to take this opportunity to thank all of them. First and

foremost, I am particularly indebted to my doctoral advisor, Prof. Dr. Peter Leibfried,
who made this research possible, continuously providing me with guidance and
encouragement over many years. His insights and advice significantly helped me to
complete this work. I would further like to express my sincere gratitude to Prof. Dr.
Dirk Schäfer, who served as co-advisor and supported this project with valuable
thoughts and ideas.
I have written this thesis while being a full-time employee at KPMG LLP in New
York. In order to participate in the Ph.D. program in St. Gallen and to draft my thesis I
was granted several study leaves. I would therefore like to express my genuine thanks
to Dr. Norbert Fischer and Jan Storbeck for their trust and flexibility. Moreover, I also
thank Ingo Zielhoff, who supported me during the final phase of this project.
I would also like to specifically thank Dr. Torsten Jaskolski for discussing and
exchanging our ideas throughout the years. Special thanks go to Nicholas Jungovic for
supporting me and reading the draft of this thesis. In addition, I further extend my
thanks to my family and friends, who have always been there for me despite my
limited time.
My deepest gratitude goes to my love Sophie for her unbounded patience,
understanding and sacrifices along the way, as well as for her motivating and
encouraging words during difficult times. Last but not least, I would also like to extend
my appreciation and thanks to my parents for their love and unconditional support.
This thesis is dedicated to them – it would not have been possible without them.

Zurich, June 2014

Stephan Grüber



Brief Contents

IX

BRIEF CONTENTS
1.

INTRODUCTION .....................................................................................................1
1.1. Relevance and Motivation of this Study ..........................................................1
1.2. Purpose and Methodology of this Study ..........................................................3

2.

THE FUNDAMENTALS OF FINANCIAL ACCOUNTING AND REPORTING .................7
2.1. Introduction to the Chapter .............................................................................7
2.2. Justification for the Existence of Financial Accounting and Reporting............7
2.3. Principles of Capital Markets-Oriented Financial Accounting and
Reporting .....................................................................................................24
2.4. Preliminary Summary ...................................................................................33

3.

FOUNDATION AND CHALLENGES OF INTANGIBLE VALUES IN FINANCIAL
ACCOUNTING AND REPORTING ..........................................................................35
3.1. Introduction to the Chapter ...........................................................................35
3.2. Characteristics and Attributes of Intangibles .................................................35
3.3. Intangibles and International Financial Reporting Standards .........................52
3.4. Concepts to Improve Financial Accounting and Reporting of Intangible
Values ..........................................................................................................82
3.5. Consequences for the Further Analysis ....................................................... 108

4.

FINANCIAL ANALYSTS AS USERS OF FINANCIAL ACCOUNTING AND
REPORTING INFORMATION............................................................................... 110
4.1. Introduction to the Chapter ......................................................................... 110
4.2. Fundamentals of Financial Analysts ........................................................... 111
4.3. The Elements of Financial Analysts’ Decision-Making .............................. 131
4.4. Financial Analysts and Information on Intangible Values ........................... 145
4.5. Summary and Implications for this Study ................................................... 163

5.

EMPIRICAL ANALYSES OF THE PERSPECTIVE OF FINANCIAL ANALYSTS ON
INFORMATION ABOUT INTANGIBLES ................................................................ 166
5.1. Introduction to the Chapter ......................................................................... 166
5.2. Content-Analysis of Sell-Side Research Reports......................................... 169
5.3. Experimental Survey .................................................................................. 274
5.4. Limitations of the Selected Methodologies ................................................. 399


X

Brief Contents

6.

SUMMARY AND CONSEQUENCES FOR REPORTING INTANGIBLE VALUES ........ 401
6.1. Introduction to the Chapter ......................................................................... 401
6.2. Summary and Implications of the Findings ................................................. 401
6.3. Recommendations for Accounting and Reporting Intangible Values........... 408
6.4. Future Prospects ......................................................................................... 411

Table of Contents

XI

TABLE OF CONTENTS
FOREWORD ................................................................................................................. V
ACKNOWLEDGEMENTS ............................................................................................ VII
BRIEF CONTENTS ...................................................................................................... IX
TABLE OF CONTENTS ................................................................................................ XI
ABSTRACT ............................................................................................................. XVII
LIST OF ABBREVIATIONS ....................................................................................... XIX
LIST OF FIGURES................................................................................................... XXV
LIST OF TABLES ...................................................................................................XXIX
1.

2.

INTRODUCTION .....................................................................................................1
1.1.

Relevance and Motivation of this Study ......................................................1

1.2.

Purpose and Methodology of this Study ......................................................3

THE FUNDAMENTALS OF FINANCIAL ACCOUNTING AND REPORTING .................7
2.1.

Introduction to the Chapter .........................................................................7

2.2. Justification for the Existence of Financial Accounting and Reporting .....7
2.2.1. Neoclassical Economic and Finance Theory ...............................................8
2.2.1.1.
The Efficient-Market Hypothesis and Empirical Evidence................9
2.2.1.2.
Implications of the Efficient-Market Hypothesis ............................11
2.2.2. New Institutional Economics and Principal Agent Theory ........................14
2.2.2.1.
Information Asymmetries and Agency Costs ..................................16
2.2.2.2.
Financial Information as a Solution to the Agency Problem............18
2.2.3. Summary and Consequences for the Design of Financial Accounting
and Reporting ...........................................................................................21
2.3.

Principles of Capital Markets-Oriented Financial Accounting and
Reporting ....................................................................................................24
2.3.1. Primary User Group and Objectives of International Financial
Reporting Standards ..................................................................................24
2.3.2. Definition and Criteria of Decision-Useful Information ............................28

2.4.

Preliminary Summary ................................................................................33


XII

3.

Table of Contents

FOUNDATION AND CHALLENGES OF INTANGIBLE VALUES IN FINANCIAL
ACCOUNTING AND REPORTING ..........................................................................35
3.1.

Introduction to the Chapter .......................................................................35

3.2. Characteristics and Attributes of Intangibles ...........................................35
3.2.1. Definition and Distinction of Intangibles ..................................................36
3.2.2. Economic Properties of Intangible Values ................................................40
3.2.3. Classification of Intangible Values ...........................................................45
3.2.3.1.
Legal Classification Scheme ...........................................................45
3.2.3.2.
Economic Classification Schemes ..................................................47
3.3. Intangibles and International Financial Reporting Standards ................52
3.3.1. Initial Recognition and Measurement of Intangible Assets ........................53
3.3.1.1.
Definition of Intangible Assets .......................................................55
3.3.1.2.
Recognition and Measurement of Intangible Assets ........................63
3.3.1.3.
Acquisition as Part of a Business Combination ...............................65
3.3.1.4.
Additional Requirements for Internally Generated Intangibles........68
3.3.2. Subsequent Measurement .........................................................................72

3.3.3. Current Disclosure Requirements for Intangible Assets ............................73
3.3.4. Constraints and their Impact .....................................................................74
3.3.4.1.
Decreasing Relevance of IFRSs and It Reasons ..............................74
3.3.4.2.
Impact of Failing to Provide Information on Intangible Values .......77
3.4.

Concepts to Improve Financial Accounting and Reporting of
Intangible Values ........................................................................................82
3.4.1. Extended Reporting within the Classic Presentation Formats ....................82
3.4.1.1.
The AASB Discussion Paper ..........................................................83
3.4.1.2.
Additional Proposals ......................................................................87
3.4.2. Proposals for an Extended Business Reporting of Intangible Values .........89
3.4.2.1.
Top-Down Methods of an Extended Business Reporting ................93
3.4.2.2.
Bottom-Up Methods of an Extended Business Reporting ............. 100

3.5.
4.

Consequences for the Further Analysis ................................................... 108

FINANCIAL ANALYSTS AS USERS OF FINANCIAL ACCOUNTING AND
REPORTING INFORMATION............................................................................... 110
4.1.

Introduction to the Chapter ..................................................................... 110

4.2. Fundamentals of Financial Analysts ........................................................ 111
4.2.1. Definition and Responsibilities of Financial Analysts ............................. 111
4.2.2. Classification and Different Types of Financial Analysts ........................ 115
4.2.2.1.
Institutional Classification ............................................................ 115
4.2.2.2.
Functional Classification .............................................................. 120


Table of Contents

XIII

4.2.3. Financial Analysts as Providers of Useful Information............................ 126
4.3. The Elements of Financial Analysts’ Decision-Making .......................... 131
4.3.1. Collecting Information ............................................................................ 132
4.3.2. Information Processing ........................................................................... 136
4.3.2.1.
Equity Financial Analysts ............................................................. 137
4.3.2.2.
Fixed Income Financial Analysts .................................................. 140
4.3.3. Distribution of Information ..................................................................... 144
4.4. Financial Analysts and Information on Intangible Values ..................... 145
4.4.1. Methods Employed by Equity Analysts .................................................. 145
4.4.1.1.
Technical Analysis ....................................................................... 146
4.4.1.2.
Fundamental Analysis .................................................................. 147

4.4.1.3.
Additional Valuation Models ........................................................ 155
4.4.2. Methods Employed by Fixed Income Analysts ....................................... 156
4.4.3. Behavioral Aspects ................................................................................. 159
4.4.3.1.
Decision-Making Concepts ........................................................... 159
4.4.3.2.
Behavioral Influences ................................................................... 160
4.4.4. Other Aspects ......................................................................................... 163
4.5.
5.

Summary and Implications for this Study............................................... 163

EMPIRICAL ANALYSES OF THE PERSPECTIVE OF FINANCIAL ANALYSTS ON
INFORMATION ABOUT INTANGIBLES ................................................................ 166
5.1.

Introduction to the Chapter ..................................................................... 166

5.2. Content-Analysis of Sell-Side Research Reports ..................................... 169
5.2.1. Purpose of this Content Analysis ............................................................ 169
5.2.2. General Objectives and Methodology of Content Analysis ..................... 170
5.2.3. Prior Content Analyses in Accounting Research ..................................... 174
5.2.4. Research Gap and Hypotheses for this Study .......................................... 184
5.2.5. Research Design of this Study ................................................................ 191
5.2.5.1.
Description of the Research Object ............................................... 191
5.2.5.2.
Sample Selection and Data Collection .......................................... 195

5.2.5.3.
Test Procedures and Constructing the Intangible Score ................. 196
5.2.5.4.
Applied Statistical Tests ............................................................... 203
5.2.6. Validity and Reliability of the Content Analysis ..................................... 209
5.2.7. Findings and Discussion ......................................................................... 213
5.2.7.1.
Descriptive Statistics of the Sample .............................................. 214
5.2.7.2.
Preferred Valuation Methods ........................................................ 219
5.2.7.3.
Results for the Total Sample ......................................................... 221
5.2.7.3.1. Human Capital Information Items .............................................. 225


XIV

Table of Contents

5.2.7.3.2. Internal Capital Information Items ............................................. 231
5.2.7.3.3. External Capital Information Items ............................................ 241
5.2.7.4.
Results for the Hypotheses Tests .................................................. 246
5.2.7.4.1. Report Characteristics ................................................................ 246
5.2.7.4.2. Firm Characteristics ................................................................... 253
5.2.8. Preliminary Summary ............................................................................. 271
5.3. Experimental Survey ................................................................................ 274
5.3.1. Objectives of the Survey ......................................................................... 274
5.3.2. Sample and Data Collection Procedures .................................................. 276
5.3.3. Survey Structure and Applied Statistical Tests ........................................ 279

5.3.3.1.
Investment Recommendation Task ............................................... 280
5.3.3.1.1. The General Framework of Conjoint Analysis ........................... 281
5.3.3.1.2. Conjoint Analysis in Accounting and Finance Research............. 295
5.3.3.1.3. Design of the Investment Recommendation Task ....................... 304
5.3.3.2.
Design and Approach Related to Other Investigated Variables ..... 311
5.3.4. Response Rate and External Validity ...................................................... 313
5.3.5. Findings and Discussion ......................................................................... 320
5.3.5.1.
Descriptive Statistics of Respondents ........................................... 321
5.3.5.2.
Preferred Information Sources ...................................................... 326
5.3.5.2.1. Results for the Total Sample ...................................................... 327
5.3.5.2.2. Comparisons of Analyst Groups................................................. 330
5.3.5.2.3. Additional Information Sources Mentioned by Financial
Analysts ..................................................................................... 336
5.3.5.3.
Valuation Methods of Financial Analysts ..................................... 337
5.3.5.3.1. Results for the Total Sample ...................................................... 338
5.3.5.3.2. Comparisons of Analyst Groups................................................. 340
5.3.5.3.3. Additional Valuation Methods Mentioned by Analysts .............. 343
5.3.5.4.
Perceived Importance of Inputs for Company Valuation and
Analysis ....................................................................................... 345
5.3.5.4.1. Results for the Total Sample ...................................................... 346
5.3.5.4.2. Comparisons of Analyst Groups................................................. 351
5.3.5.4.3. Additional Valuation Inputs Mentioned by Financial Analysts ... 358
5.3.5.5.
Investment Recommendation Task ............................................... 360

5.3.5.5.1. Results for the Total Sample ...................................................... 361
5.3.5.5.2. Comparison of Different Analyst Groups ................................... 372
5.3.5.6.
Preferences about Reporting Information on Intangibles............... 378
5.3.5.6.1. Results for the Total Sample ...................................................... 379
5.3.5.6.2. Comparison of Analyst Groups .................................................. 385
5.3.5.6.3. Additional Comments Mentioned by Financial Analysts ............ 394


Table of Contents

XV

5.3.6. Preliminary Summary ............................................................................. 397
5.4.
6.

Limitations of the Selected Methodologies .............................................. 399

SUMMARY AND CONSEQUENCES FOR REPORTING INTANGIBLE VALUES ........ 401
6.1.

Introduction to the Chapter ..................................................................... 401

6.2.

Summary and Implications of the Findings ............................................ 401

6.3.

Recommendations for Accounting and Reporting Intangible Values .... 408

6.4.

Future Prospects ....................................................................................... 411

APPENDIX ................................................................................................................. 415
INDEX OF ACCOUNTING PRINCIPLES, STANDARDS AND OTHER STATUTES ............ 485
INDEX OF SELL-SIDE RESEARCH REPORTS CITED IN THE MAIN TEXT ................... 487
REFERENCES ............................................................................................................ 491



Abstract

XVII

ABSTRACT

Many academics and practitioners argue that intangible values have become a
significant value driver of companies in today’s economy. Major production inputs do
no longer comprise of items, such as property, plant and equipment, but rather of
brands, knowledge and other technological innovation. Based on this notion,
information on such phenomena is supposedly crucial for the existing and potential
capital providers in making their decision whether to allocate resources to a company.
The present thesis examines the information use and needs of financial analysts with
respect to intangible values. The purpose is to shed light on the usefulness of such
information from the perspective of one of the primary user groups of IFRSs. This
thesis provides evidence about whether information on such values is actually used in
the decisions of financial analysts and if so, under what circumstances they employ

such information and what type of information they consider as useful.
Upon defining and characterizing intangible values, the current state of IFRSs with
respect to such values is discussed, highlighting the associated issues, the impacts and
the proposals to overcome the current state. Subsequently, the fundamentals of
financial analysts are introduced, including their objectives, their potential
classification schemes as well as their decision-making processes.
The main part of this thesis reports on two empirical studies that were carried out to
examine the actual information use of financial analysts. The first study applied the
method of content analysis to sell-side research reports, finding evidence for the use of
information on intangible values by sell-side analysts. The second study employed
survey methodology to investigate the perceptions of four different analysts groups on
intangible values. The second study further included an experimental part that allowed
observing data derived from actual decisions.
In summary, it was found that information on intangible values is useful for the
decisions of the different analyst groups. Moreover, the user needs and preferences
were discussed in order to define several recommendations of how to report
information on intangible values.


XVIII

Abstract

ZUSAMMENFASSUNG
In den letzten Jahren wurde immer wieder vorgebracht, dass immaterielle Werte
zunehmend die bedeutenden Werttreiber in den Unternehmen der heutigen Zeit
darstellen. Wichtige Produktionsfaktoren sind nicht mehr materielle Vermögenswerte,
sondern vielmehr Marken, Wissen oder anderweitige technologische Innovationen.
Basierend auf dieser Annahme, wird die Aussage getroffen, dass die Informationen
über solche Phänomene in den Allokationsentscheidungen der Kapitalgeber einer

Unternehmung unerlässlich sind.
Die vorliegende Arbeit untersucht die Informationsverwendung durch Finanzanalysten
und deren Informationsbedürfnisse in Bezug auf immaterielle Werte. Zweck der
Arbeit ist es, den Nutzen solcher Informationen aus der Perspektive von einer der
primären Adressatengruppe von IFRS näher zu beleuchten.
Nach der Begriffsabgrenzung des immateriellen Werts, werden zunächst die aktuellen
Regelungen der IFRS dargestellt sowie

problematisiert und die in der Literatur

diskutierten Lösungsvorschläge präsentiert. Im Anschluss werden die Grundlagen der
Finanzanalysten in Bezug zu ihren Zielen, möglichen Klassifizierungen und
Entscheidungsprozessen dargestellt.
Im Hauptteil dieser Arbeit werden zwei empirische Studien vorgestellt, die die
tatsächliche Verarbeitung von Informationen durch Finanzanalysten untersucht haben.
Die erste Studie hat unter Verwendung der Inhaltsanalysetechnik Sell-Side-ResearchBerichte auf die Verwendung von Information bezüglich immaterieller Werte hin
untersucht. Die zweite Studie nutzte Survey-Methodik, um die Wahrnehmung von
Finanzanalysten in Bezug auf immaterielle Werte zu untersuchen. Die zweite Studie
beinhaltete zusätzlich einen experimentellen Teil.
Zusammenfassend wurde festgestellt, dass Informationen über immaterielle Werte
nützlich für die Entscheidungen von Finanzanalysten sind. Zusätzlich wurden die
Bedürfnisse und Präferenzen der Analysten diskutiert, um Empfehlungen zur
Berichterstattung über immaterielle Werte geben zu können.


List of Abbreviations

XIX

LIST OF ABBREVIATIONS

AASB

Australian Accounting Standards Board

AFAANZ

Accounting & Finance Association of Australia and New Zealand

AICPA

American Institute of Certified Public Accountants

AG

Aktiengesellschaft (German Public Company)

ANOVA

Analysis of Variance

ASA

Australian Shareholders Association

ASX

Australian Securities Exchange

Asymp.

Asymptotic

BFuP

Betriebswirtschaftliche Forschung und Praxis (Journal)

BNA

The Bureau of National Affairs

BRIA

Behavioral Research in Accounting (Journal)

CAPM

Capital Asset Pricing Model

CC

Customer Capital

CCM

Categorical Conjoint Measurement

CEB

Centre Emile Bernheim

CEO

Chief Executive Officer

Cf.

Confer

CFA

Chartered Financial Analyst

CFO

Chief Financial Officer

CFROI

Cash Flow Return on Investment

CGU

Cash Generating Unit

CICA

Canadian Institute of Chartered Accountants

CIV

Calculated Intangible Value

CRM

Customer Relationship Management

CSR

Corporate Social Responsibility

DAX

Deutscher Aktien Index (German Stock Index)

DCF

Discounted Cash Flow


XX

List of Abbreviations

DDM

Dividend Discount Model

Df

Degree of Freedom

DStR

Deutsches Steuerrecht (Journal)

EBIT

Earnings Before Interest and Tax

EBITDA

Earnings Before Interest, Tax, Depreciation and Amortization

EC

European Commission

EFS

Enterprise Feedback Suite

e.g.

exempli gratia (for example)

EMH

Efficient-Markets-Hypothesis

ESG

Economic, Social and Corporate Governance

et al.

et ali(i) (and others)

et. seq.

and the following (singular)

et seqq.

and the following (plural)

EU

European Union

EUR

Euro

EV

Enterprise Value

EVA

Economic Value Added

e.V.

eingetragener Verein (German Registered Association)

FASB

Financial Accounting Standards Board

fn.

footnote

FTSE-100

Financial Times Stock Exchange (British Stock Index)

GAAP

Generally Accepted Accounting Principles

GmbH

Gesellschaft mit beschränkter Haftung

H

Hypothesis

HC

Human Capital

IAS(s)

International Accounting Standard(s)

IASB

International Accounting Standards Board

IASC

International Accounting Standards Committee

IBM

International Business Machines Corporation


List of Abbreviations

XXI

i.e.

id est (that is)

IFASS

International Forum of Accounting Standard Setters

IFRIC

International Financial Reporting Interpretations Committee

IFRS(s)

International Financial Reporting Standard(s)

IIRC

International Integrated Reporting Council

InC

Innovation Capital

InvC

Investor Capital

IOSCO

International Organization of Securities Commissions

IPO

Initial Public Offering

IRZ

Zeitschrift für Internationale Rechnungslegung (Journal)

IS

Information Systems

KGaA

Kommanditgesellschaft auf Aktien (German Partnership limited by
Shares)

KoR

Zeitschrift für internationale und kapitalmarktorientierte
Rechnungslegung (Journal)

LBO

Leveraged Buyout

LINMAP

Linear Programming Techniques for Multidimensional Analysis of
Preference

m

Million(s)

M&A

Mergers and Acquisitions

MD&A

Management Discussion and Analysis

MERITUM

Measuring Intangibles to Understand and Improve Innovation
Management

ML

Maximum Likelihood

MONANOVA

Monotone Analysis of Variance

MSAE

Minimizing Sum of Absolute Errors

NAV

Net Asset Value

NIE

New Institutional Economics

No.

Number

OC

Organizational Capital


XXII

List of Abbreviations

OLS

(Method of) Ordinary Least Squares

para.

paragraph(s)

p.

page

PER

Price-to-Earnings-Ratio

Ph.D.

Doctor of Philosophy

pp.

pages

PREFMAP

Preference Mapping

PRISM

Policy-Making – Reporting and Measurement – Intangibles –
Skills Development – Management (EU Project)

R&D

research & development

REG

regulation

RICARDIS

Reporting Intellectual Capital to Augment Research, Development
and Innovation in SMEs (EU Project)

ROA

Return on Assets

ROE

Return on Earnings

ROIC

Return on Invested Capital

RQ

Research Question

S&P

Standard and Poor’s

SC

Supplier Capital

SD

Standard Deviation

SE

Standard Error

SEC

(U.S.) Securities Exchange Commission

SFAS

Statement of Financial Accounting Standards

SIA

Securities Industry Association

SIC

Standing Interpretations Committee

sic

sic erat scriptum (thus was it written)

sig.

(statistical) significance

SJT

Social Judgment Theory

SME

Small and Medium-Sized Enterprise

SPSS

Statistical Package for the Social Sciences (Software Application)


List of Abbreviations

XXIII

SSRN

Social Science Research Network

Std.

standard

STRAT

Strategy

SWOT

Strengths, Weaknesses, Opportunities, Threats

TAB

Tax Amortization Benefit

UK

United Kingdom

U.S.

United States

vol.

volume

vs.

versus

WACC

Weighted Average Cost of Capital

ZA

Zentralarchiv (Central Archives)

ZfbF

Zeitschrift für betriebswirtschaftliche Forschung (Journal)

ZfCM

Zeitschrift für Controlling & Management (Journal)

zfo

Zeitschrift Führung + Organisation (journal)