I.T. Investment and intangibles: evidence from banks
AbstractThis paper models the investment behaviour of a multi-asset firm with market power that accumulates valuable intangible assets to complement the IT capital. The investment model is estimated using data from Spanish banks on assets of different nature: material (branches, financial), immaterial (advertising and IT) and intangible (training of workers). The paper estimates that the representative bank spends five additional Euros per Euro invested in IT-related assets in complementary intangible assets or, equivalently, intangibles amount to approximately 10% of the economic value of the representative bank. The remaining economic value is distributed between 28% from rents attributed to market power, and 62% to the cost of market-purchased assets.
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Bibliographic InfoPaper provided by Banco de Espa�a in its series Banco de Espa�a Working Papers with number 1020.
Length: 34 pages
Date of creation: Jun 2010
Date of revision:
multi-asset firm; investment; intangible assets; banks;
Other versions of this item:
- Alfredo Martín‐Oliver & Vicente Salas‐Fumás, 2011. "It Investment And Intangibles: Evidence From Banks," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(3), pages 513-535, 09.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
This paper has been announced in the following NEP Reports:
- NEP-ACC-2010-07-10 (Accounting & Auditing)
- NEP-ALL-2010-07-10 (All new papers)
- NEP-BAN-2010-07-10 (Banking)
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- Hiroki Arato & Katsunori Yamada, 2012.
"Japan's Intangible Capital and Valuation of Corporations in a Neoclassical Framework,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 15(4), pages 459-478, October.
- Hiroki Arato & Katsunori Yamada, 2010. "Japan's Intangible Capital and Valuation of Corporations in a Neoclassical Framework," ISER Discussion Paper 0772, Institute of Social and Economic Research, Osaka University, revised Nov 2011.
- Hiroki Arato & Katsunori Yamada, 2011. "Code and data files for "Japan's Intangible Capital and Valuation of Corporations in a Neoclassical Framework"," Computer Codes 10-34, Review of Economic Dynamics.
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