Research On Information Disclosure Of Intangibles For High & New Tech Enterprises Based On Value Creation

Intangibles are becoming a critical factor in enterprises' value creation, especially for High & New Tech enterprises (H&N techs) in the era of information economy. To outsiders or potential fund suppliers, intangiles' information is of importance to demostrate the enterprises' ture value. Although Chinese Accounting Standards issued in 2006 allows enterprises capitalize the R&D outlays subject to certain criteria, due to its nature, there do have some deficiencies. Preview studies show that these deficencies could have detrimental rusults for H&N Techs such as funding difficulties and financing's high cost. This paper intends to find out the main weakness in current intangibles' disclosure and suggests improving this from the angle of value creation.In the first part, present disclosure practices of H&N Techs are reviewd and some weaknesses are discussed. Secondly, pre-demonstation models are discussed and these totally focus on analysing factors in relation to intangibles and correlative extents between capacity of owning profit and intangiles' disclosure. In order to measure the quality of intangiles' disclosure, a testing model, return of asset model (ROA), is advanced. The key of ROA model is to observe the changing of contribution rate of intangibles. Moreover, a demostration is carried out with ROA model by choosing 107 samples of listed H&N Techs from 2001 to 2006. In the mean time, observation is kept on both contribution rate of intangibles' book value (RBIA) and contribution rate of intangibles' estimated value (REIA). Hypothesis & Test suggests: RBIA isn't always positive, this barely supplies any meaningful information; REIA is significantly positive, moving smoothly, to some extent, investors could refer to it for decision making. However, it is still far away from satisfation. To this question, this paper considers it is of necessity to anlyse the process of H&N Techs' value creation carefully. What's more, a framework of intangibles' disclosure could be established to get it promoted.