The value relevance of intangibles: some evidence on industry sector, firm performance and size effects
| Autor: | Maqsood Iqbal Qureshi |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Organizational Behavior and Human Resource Management
Creditor business.industry 05 social sciences Accounting Research findings Profit (economics) Industry sector 0502 economics and business Goodwill Economics 050211 marketing Market value business 050203 business & management Finance Valuation (finance) |
| Zdroj: | International Journal of Accounting, Auditing and Performance Evaluation. 13:293 |
| ISSN: | 1740-8016 1740-8008 |
| DOI: | 10.1504/ijaape.2017.085184 |
| Popis: | This study, using a valuation model and a sample of UK firms for the period between 1998 and 2003, empirically investigates whether the market attaches different values to investments in goodwill (GW), research and development (RD) and advertising (AD) by firms in different sectors, of different sizes, and with different performances. The research findings indicate that the market attaches different values to investments in GW, RD and AD by firms in different sectors (manufacturing and non-manufacturing), of different sizes (large and small firms) and with different performances (profit-making and loss-making firms). Our results provide evidence that both RD and AD are valued almost equally for manufacturing and non-manufacturing and profit making and loss-making firms. While the market assigns more value to non-manufacturing and profit making firms' goodwill. Our results also suggest that goodwill, R&D, and advertising are likely to be more effective for larger firms. Overall, these results should also interest analysts and creditors seeking to evaluate firms' intangible investments, professionals engaged in designing disclosure strategies, and academics exploring issues related to intangibles. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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