The Accessibility and Perceived Usefulness of Information on the Capital Expenditure Intentions of UK Quoted Companies

Two questionnaire surveys are used to examine the accessibility and perceived usefulness of information relating to the capital expenditure plans of UK firms. The first survey was addressed to the finance directors of 424 UK-quoted companies; the 2nd survey was addressed to 185 equity analysts. The...

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Bibliographic Details
Published inAccounting and business research Vol. 22; no. 85; p. 3
Main Authors Al-Qudah, K, Walker, M, Lonie, A A
Format Journal Article
LanguageEnglish
Published Abingdon Taylor & Francis Ltd 01.12.1991
Subjects
Capital expenditures
Corporate finance
Disclosure
Financial reporting
Polls & surveys
United Kingdom > UK
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Summary:Two questionnaire surveys are used to examine the accessibility and perceived usefulness of information relating to the capital expenditure plans of UK firms. The first survey was addressed to the finance directors of 424 UK-quoted companies; the 2nd survey was addressed to 185 equity analysts. The evidence indicates that analysts and company financial managers view such information as potentially useful for external investment purposes. There appears to be considerable cross-firm variation in the extent to which such information is made available to external investors. Companies seem to be more likely to disclose news about their capital expenditure intentions under the following conditions: 1. when their finance directors feel the information is useful to external shareholders, 2. when there is an associated requirement to raise additional external finance, and 3. when the news relates to an increase in capital expenditure.
ISSN:0001-4788
2159-4260
DOI:10.1080/00014788.1991.9729412