Equity Investing in the Age of Intangibles

Dugar, Amitabh; Pozharny, Jacob

doi:10.1080/0015198x.2021.1874726

Cited by 10 publications

(9 citation statements)

References 42 publications

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“…Intuitively, intangible assets are more firm-specific and, thus, less comparable across firms than tangible assets (e.g., fixed assets, real estate, factories, and equipment). Compounding the difficulty, the existing accounting and reporting rules have not kept pace with the rise of intangible investments (Dugar & Pozharny, 2021 ), potentially leading to significant mismeasurement of important firm characteristics, such as productivity (Bhandari & McGrattan, 2021 ; Corrado et al, 2009 ; Haskel & Westlake, 2017 ), book equity and earnings (Lev, 2019 ; Srivastava, 2014 ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In addition, Palmon and Yezegel ( 2012 ) found that analysts’ recommendation revisions were more valuable for firms with high research & development (R&D) intensity, the hypothesis being that R&D intensity increases information asymmetry. Furthermore, Dugar and Pozharny ( 2021 ) found that the value relevance of book equity and earnings declined only in firms with high intangibles.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Puzzling Convergence of Intangible Investments

2022

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Motivated by the rising prominence of intangibles, this paper explores whether there are common forces that drive intangible investments in the U.S. and the Euro area, in tandem with firm-specific characteristics. If such forces exist, there should be groups of firms (convergent clubs) for which the time-varying cross-sectional variance of intangible investments (scaled by total assets) declines over time. The empirical results indicate that there is a big convergent club in both economic areas, the sectoral composition of which is similar to that of the entire sample, an indication that the common forces are economy-wide and not sector-specific. Moreover, the country composition of the big club in the Euro area is also similar to that of the entire sample, an indication that they are not country-specific either. More puzzling, the evidence of common forces is stronger for the Euro area countries, despite their differing overall economic and financial-market conditions, and that their bank-based financial systems are less likely to finance intangible assets than the U.S. market-based one. The paper also used probit analysis to identify the common forces; but this analysis did not yield any firm results. Nevertheless, the main finding of the paper, itself a novel contribution to the rapidly growing literature on intangibles, suggests another angle to re-examine the existing empirical literature and identifies potential misspecification problems of related microeconomic studies. As such, it should be of interest to researchers, market participants, and to standard-setters and policymakers who base their decisions on empirical studies.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

The Puzzling Convergence of Intangible Investments

2022

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“…The authors [9,20] consider methods for optimizing investments, as well as ways to optimize the total cost of attracting capital investments and argue that capital investments in fixed assets have an advantage over other types of investments.…”

Section: Problem Statementmentioning

confidence: 99%

“…Let G = (V, B i ) be a graph in which the ending V is a set of variables; B i is nonreflexive binary relation on [9,20]. Each variable v has a set of parent variables c(v) ⊆ V and a set of all d(v) ⊆ V descendants .…”

Section: Bayesian Networkmentioning

confidence: 99%

Using Bayesian Networks to Estimate the Effectiveness of Innovative Projects

Naumov

Voronenko

Наумова

et al. 2021

Lecture Notes in Computational Intelligence and Decision Making

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The paper proposes an application of Bayesian methodology to analyze the attachment effectiveness in the national economy. The methods for creation the BNs structure, their parametric learning, validation, and scenario analysis are examined. The research results show that at the highest level of capital investments, the financial activity result will be 48% more active, while the net profit indicator will rise by 8%. To make the profitability equal 100%, it is desirable for us to decrease the payback term by 15% and increase the level of net profit by 9%. This study can be useful for investors, managers, economists, financiers and other investment professionals. Keywords: Innovative projects• Attachment effectiveness • Bayesian networks • Validation • scenario analysis "What-if"

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“…At the same time, it is necessary to ensure that the evaluation system can cover the corresponding costs and applications of the data assets. [9]. We calculate the main weights of different evaluation indicators and the corresponding target layer, design specific operation methods, and verify the operability of the evaluation system with examples [10].…”

Section: Introductionmentioning

confidence: 99%

Application and Analysis of Improved Fuzzy Comprehensive Evaluation Method in Goodwill Evaluation and Intangible Asset Management

2022

Computational Intelligence and Neuroscience

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In order to improve the effect of goodwill evaluation and intangible asset management, this paper combines the improved fuzzy comprehensive evaluation method to construct an intelligent algorithm. In order to consider the many influencing factors of intangible asset prices and their own influence, this experiment adopts the ARDL model for analysis. Based on the traditional LSTM model, this paper innovatively introduces sparse principal component analysis for feature dimensionality reduction and, on the other hand, adds a convolutional neural network to the model, which is suitable for feature extraction. In addition, this paper constructs a goodwill evaluation and intangible asset management model based on the improved fuzzy comprehensive evaluation method. The research shows that the improved fuzzy comprehensive evaluation method proposed in this paper has a very good application effect in goodwill evaluation and intangible asset management.

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Equity Investing in the Age of Intangibles

Cited by 10 publications

References 42 publications

The Puzzling Convergence of Intangible Investments

The Puzzling Convergence of Intangible Investments

Using Bayesian Networks to Estimate the Effectiveness of Innovative Projects

Application and Analysis of Improved Fuzzy Comprehensive Evaluation Method in Goodwill Evaluation and Intangible Asset Management

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