JOURNAL ARTICLE

Business Acquisition Disclosures: The Effect of Identifying Intangible Assets on Investors' Judgments.

  • Published In: Management Science (INFORMS), 2025, v. 71, n. 12. P. 10624 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Leitter, Zheng; Koonce, Lisa; White, Brian 3 of 3

Abstract

This article investigates how disclosures about business acquisitions affect investors' understanding, focusing on the separate identification of intangible assets acquired in a transaction. Through two experiments involving prospective investors, the study finds that explicitly listing acquired intangible assets—such as trademarks, customer relationships, and proprietary technologies—helps investors mentally simulate how the acquiring company might benefit from the acquisition, especially when the acquirer does not disclose its postacquisition plans. This effect does not extend to tangible assets, indicating a unique role for intangible asset identification in improving investor judgments. The findings suggest that mandating separate disclosure of acquired intangibles could enhance the usefulness of acquisition disclosures without requiring firms to reveal sensitive strategic information.

Additional Information

  • Source:Management Science (INFORMS). 2025/12, Vol. 71, Issue 12, p10624
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0025-1909
  • DOI:10.1287/mnsc.2023.02673
  • Accession Number:189795903
  • Copyright Statement:Copyright of Management Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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