Work

The Valuation of Organization Capital

Year: 2005

Type: book-chapter

Abstract: This chapter describes a firm-specific measure of organization capital and applies it to produce estimate for a large sample of publicly traded companies. It explains that this measure involves the measure organizational capital as a residual, much like total factor productivity. This chapter also evaluates the validity of this measure within a widely used investment valuation model and shows that it can contribute significantly to the explanation of differences in market values of firms, beyond the traditional value indicators of assets in place and expected abnormal earnings.

Source: University of Chicago Press eBooks

DOI: 10.7208/chicago/9780226116174.003.0004

Authors: Baruch Lev, Suresh Radhakrishnan

Institutions: National Bureau of Economic Research, Harvard University, University of Illinois Urbana-Champaign, The University of Texas at Dallas, New York University, University of California, Berkeley

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1557084995

FWCI: 27

Cites: 34

Cited by: 302

Related to: 10