The Value of Intangible Corporate Assets: An Empirical Study of the Components of Tobin's Q
AbstractThe relative stock market valuation of the intangible asset created by R&D; investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period. At the same time, the relative market valuation of advertising expenditure has risen to parity with R&D; spending. This finding is based on a large comprehensive panel of about 2500 U.S. industrial corporations, covering eighty to ninety percent of industrial R&D; performed by U.S. firms and is robust to industry controls, sample selection, and various specification tests. Possible explanations for the finding are discussed, but definitive answers await future research.
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Bibliographic InfoPaper provided by Department of Economics, Institute for Business and Economic Research, UC Berkeley in its series Department of Economics, Working Paper Series with number qt44x548gq.
Date of creation: 01 Jan 1993
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R&D investment; market value; Tobin's Q; intangible assets; Business; Social and Behavioral Sciences; Technology and Innovation;
Other versions of this item:
- Bronwyn H. Hall., 1993. "The Value of Intangible Corporate Assets: An Empirical Study of the Components of Tobin's Q," Economics Working Papers 93-207, University of California at Berkeley.
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