The Role of Intangible Assets in Shaping Firm Value
Year: 2025
Type: article
Abstract: ABSTRACT This study introduces a new metric to evaluate a firm's intangible asset intensity, focusing on its ability to generate revenue from nonphysical assets. It finds a strong positive correlation between firm performance and both internally generated and externally acquired intangible assets. Firms with high intangible intensity outperform peers by 3% annually. The oversight of intangible assets is identified as a factor in value stocks' underperformance. Rigorous tests, including endogeneity checks, confirm these firms exhibit superior accounting quality, labour investment efficiency and acquisition returns. A framework highlights how managerial attributes enhance firm value through decision‐making.
Source: European Financial Management
DOI: 10.1111/eufm.12547
Authors: Feng Dong, John Doukas
Institutions: Elon University, University of Cambridge, Old Dominion University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,350
OpenAlex ID: W4408412158