Measuring Intangible Investment
Recent years have seen a growth in the literature on a variety of aspects of intangible investment, the complement of the more familiar investment in tangible assets such as buildings, plant, and equipment. For economic and business analysts this change in emphasis necessitates the selection of a meaningful metric for intangible investment and the firm’s total capital stock of tangible and intangible assets, which is not provided by conventional accounting systems. This gives rise to a deficiency of information for two principal audiences: shareholders and external stakeholders in the firm and the internal management of the firm. Information to know and understand the level of returns to past investments; and to form expectations about future investments, their returns, and risk profiles is accordingly missing. This paper builds on recent studies focusing on this problem to (1) characterize the nature and implications of the information deficiency; and (2) develop an intangible metric that illustrates what can be achieved with suitable accounting data.
|Date of creation:||Oct 2005|
|Contact details of provider:|| Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia|
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://melbourneinstitute.unimelb.edu.au/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jaffe, Adam B, 1986.
"Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value,"
American Economic Review,
American Economic Association, vol. 76(5), pages 984-1001, December.
- Adam B. Jaffe, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value," NBER Working Papers 1815, National Bureau of Economic Research, Inc.
- Ittner, Christopher D. & Larcker, David F., 2001. "Assessing empirical research in managerial accounting: a value-based management perspective," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 349-410, December.
- Stefano Brusoni & Orietta Marsili & Ammon Salter, 2005. "The role of codified sources of knowledge in innovation: Empirical evidence from Dutch manufacturing," Journal of Evolutionary Economics, Springer, vol. 15(2), pages 211-231, January.
- Stefano Brusoni & Orietta Marsili & Ammon Salter, 2002. "The role of codified sources of knowledge in innovation: empirical evidence from Dutch manufacturing," SPRU Working Paper Series 80, SPRU - Science and Technology Policy Research, University of Sussex.
- Bouwens, Jan & Abernethy, Margaret A., 2000. "The consequences of customization on management accounting system design," Accounting, Organizations and Society, Elsevier, vol. 25(3), pages 221-241, April.
- Dechow, Patricia M. & Sloan, Richard G., 1991. "Executive incentives and the horizon problem : An empirical investigation," Journal of Accounting and Economics, Elsevier, vol. 14(1), pages 51-89, March.
- Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-185, March.
- Laurie Hunter, 2002. "Intellectual Capital: Accumulation and Appropriation," Melbourne Institute Working Paper Series wp2002n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. Full references (including those not matched with items on IDEAS)