Does the Stock Market Evaluate Intangible Assets? An empirical analysis using data of listed firms in Japan
Following Corrado et al. (2009), we measure intangible assets at the listed firm level in Japan. Compared to the conventional Tobin's Q, the revised Q including intangibles is almost 1 on average, as suggested by Hall (2000 and 2001). The standard deviation of the revised Q is smaller than that of the conventional Q. Estimation results based on Bond and Cummins (2000) show that greater intangible assets increase firm value. In particular, in the IT industries, on average, Tobin's Q is higher than that in the non-IT industries, and the stock market reflects the value of intangibles in the IT industries. These results suggest that the government should adopt policies that promote investment, including intangibles in the IT industries, and change in the industry structure in Japan.
|Date of creation:||Jun 2013|
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International Association for Research in Income and Wealth, vol. 55(3), pages 686-716, September.
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- Corrado, Carol & Haskel, Jonathan & Iommi, Massimiliano & Jona-Lasinio, Cecilia, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement and Comparative Results," CEPR Discussion Papers 9061, C.E.P.R. Discussion Papers. Full references (including those not matched with items on IDEAS)
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