The purpose of this paper is to explore how Japanese Financial Institutions (JFI)
acquire and use company intellectual capital (IC) information and other associated intangibles
information in their common structured and routine equity investment decisions and how this
activity contributed to knowledge creation in the JFIs concerning knowledge of companies,
markets and emotions. Company IC information contributed to earnings estimates and company
valuation. Impressionistic and emotional information about intangibles contributed to JFI
feelings and confidence in their valuation and information use. Both led to investment
decisions. JFI knowledge was an important component of the key interacting and informed
contexts used by JFIs to make collective sense of these different but complementary types of
information in investment decision making. This created opportunities for improved
disclosure and accountability between JFIs and their investee companies. Common patterns of
behaviour across the JFIs were counterbalanced by variety and differences noted in JFI
behaviour. These included differences in JFI investment philosophy and ‘landscape’.
2010.