Empirical study of the determinants of accounting choices to intangible investments

Abstract

Intangible assets have become increasingly important in different economies and a development in the relationship of capital markets with public shareholders has been emerged, leading to a growing level of contrast in financial information, and the emergence of the importance of the essential role of accounting in providing such information that allows to view the true image of the institution. The study aims at examining accounting determinants of intangible investments in Algerian economic institutions. The sample study includes 61 institutions during 2010-2014. The results of the study concluded that there is a negative and moral impact on the leveraged restrictions imposed by the institution on the options of activating institutions for intangible investments, as well as the existence of a negative non-moral correlation among investment opportunities and options of activating intangible investments. These options are also weakly influenced by economical performance index. There is a correlation between the activation options and the characteristics of the business environment (size, activity sector, accounting legislation, quality of ownership)