Inferring the Value of Intangible Assets

Angelopoulos, Georgios; Giamouridis, Daniel; Vlismas, Orestes

doi:10.2139/ssrn.1786285

Cited by 3 publications

(3 citation statements)

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“…Our approach to this issue differs from that of Arnott et al (2021), Amenc et al (2020), and Li (2020), who attempted to adjust book values for the impact of unaccounted intangible capital, and from that of Angelopoulos et al (2012), who estimated industry-relative intangible intensity for companies in each industry. Although such methods can compensate for biases in valuation metrics that result from inadequate accounting of intangible capital, company-level estimates of intangible capital may be volatile and fraught with measurement error.…”

Section: Discussionmentioning

confidence: 99%

“…Using SG&A expenses to estimate the stock of organization capital for a sample of US companies, Eisfeldt and Papanikolaou (2013) concluded that companies with a high ratio of organization capital to book assets exhibit higher annual average market returns. Using an industry-relative measure of SG&A expenses, Angelopoulos, Giamouridis, and Vlismas (2012) showed that intangible organization capital is helpful in predicting stock returns for US companies. Comparable results for international companies, however, are sparse.…”

Section: Intangible-intensity Metricsmentioning

confidence: 99%

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Equity Investing in the Age of Intangibles

Dugar¹,

Pozharny

2021

Financial Analysts Journal

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E xpenditures for the creation of intangible capital have increased since the 1990s, but accounting standards have not adapted to this increase. Among the sample of non-US companies we studied for this article, the proportion of capitalized intangible assets (excluding goodwill) relative to total assets increased from 0.2% to 2.2% between 1994 and 2018, and for US companies, these assets rose from 2.75% to 6.12%. Uncapitalized intangible capital expenditures, such as those on research and development (R&D), also increased over the same period. For our sample of international companies, R&D expenses relative to total revenues rose from 1.52% to 2.20%, and for US companies, they grew from 9.47% to 14.36% from 1994 to 2018. Recently, several authors investigated the impact of the increase in importance of intangible assets relative to that of physical assets on US value investing strategies (

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Section: Discussionmentioning

confidence: 99%

Section: Intangible-intensity Metricsmentioning

confidence: 99%

Equity Investing in the Age of Intangibles

Dugar¹,

Pozharny

2021

Financial Analysts Journal

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“…Intellectual capital is broadly classified into three categories (Starovic and Marr, 2004): relational capital, structural capital and human capital. Interactions among these categories are imperative for an organization's competitive advantage (Angelopoulos et al , 2012). Relational capital refers to an organization's ability to develop and maintain relations with the customers and stakeholders who serve long-term mutually beneficial interests (Swart, 2006).…”

Section: Study Background and Hypotheses Formulationmentioning

confidence: 99%

Trends and relationship among intellectual capital disclosures, patent statistics and firm performance in Indian manufacturing sector

Dharni¹,

Jameel²

2021

JIC

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PurposeThis study highlights the trends of qualitative intellectual capital disclosures and patent statistics in the Indian manufacturing context by considering the numerous patent applications, patent grants, forward citations and backward citations. Furthermore, the study investigates the relation among qualitative disclosures, patent statistics and firm performance.Design/methodology/approachAll manufacturing companies of CNX 500 Index of National Stock Exchange of India Limited are considered. Based on data availability, 243 manufacturing firms spanning across seven major manufacturing sectors are included. Secondary data were obtained from the annual report of companies and patent databases from 2004 to 2005 to 2013–2014, generating a sample of 2,430 firm years. Content analysis and citation analysis are used for collecting the relevant data.FindingsOverall, the study results indicated increasing trends for all types of intellectual capital disclosures. Similar trends are observed for patent applications and patent grants, indicating a surge in patenting activities across the manufacturing sector. However, increasing trends in patenting activities are not reflected for forward and backward citations. In addition, significant differences in means and trend coefficients for qualitative disclosures and patent statistics indicated industry specificity within the Indian manufacturing sector. Furthermore, industry specificity is observed when translating intellectual capital to firm performance. The measure of firm performance, that is, Tobin's Q, is having a significant positive association with qualitative disclosures and patent statistics.Research limitations/implicationsAs the study is based on secondary data, its accuracy is limited by the accuracy of the data sources such as the annual reports of companies and patent databases.Practical implicationsThe study findings imply that policymakers should devise and execute sector-specific policy interventions. Moreover, managers and policymakers should emphasize the qualitative aspect of patenting activities.Originality/valueThe study is an original work that highlights the trends in qualitative disclosures in the Indian manufacturing context. The value relevance of intellectual capital and patent statistics has been established.

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Inferring the Financial Materiality of Corporate Social Responsibility News

Moniz

2016

SSRN Journal

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Inferring the Value of Intangible Assets

Cited by 3 publications

References 59 publications

Equity Investing in the Age of Intangibles

Equity Investing in the Age of Intangibles

Trends and relationship among intellectual capital disclosures, patent statistics and firm performance in Indian manufacturing sector

Inferring the Financial Materiality of Corporate Social Responsibility News

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