Are accounting choices for intangible assets informative or opportunistic? Evidence from Poland

This study investigates accounting policy choices for intangible assets and their determinants within the framework of positive accounting theory (PAT). A composite income strategy measure of five accounting policies is calculated. Determinants of an income strategy are analyzed with a cross-sectional sample of 117 Polish-listed companies for the year 2018 in a setting that is highly susceptible to managerial opportunism. The results indicate firms use more income-increasing policies and emphasize that income strategy incentives differ depending on firms’ proportion of intangible resources measured by the market-to-book ratio. Contrary to the PAT hypotheses, accounting choices in firms with high market-to-book value do not seem self-serving. Instead, they are informative and correspond to the actual intangible value created by those companies. Moreover, common opportunistic incentives do not explain the accounting choices of low market-to-book value firms.