INTELLECTUAL CAPITAL DISCLOSURE AND IPO RESULTS: IS IT A MATTER OF CLASSIFICATION?

We study the effects produced by Intellectual Capital (IC) disclosure on the IPO results. Previous findings provide inconsistent results, possibly due to the distinct ways in which IC is classified. We apply two different IC classifications to the information disclosed in the listing prospectuses of 74 Italian firms that went public between 2004 and 2014 and we build different IC disclosure indexes. The indexes are then put into a series of regressions regarding the IPO results, quantified in terms of price adjustment and underpricing. We demonstrate that the effects of IC disclosure on the IPO results are comprehensively consistent across the different IC classifications, although some differences emerge. Such evidences make clear to listing firms the great benefits deriving from the proper disclosure of their non-financial assets to investors.