IDEAS home Printed from https://ideas.repec.org/p/cnf/wpaper/0805.html
   My bibliography  Save this paper

Do Intangible Investments Create Value? Comparing Capitalization Rates of Listed Firms

Author

Listed:
  • Sjoerd van Bekkum

    (Tinbergen Institute / Erasmus University Rotterdam)

Abstract

This study investigates the link between innovation investments and future economic growth at the firm-level, by examining the growth value of a dollar invested in selling, general and administrative (SGA) expenses. An international comparison is made between capitalization rates in four large sectors, which are best represented in the sample. In all sectors, SGA expenses make a positive contribution to growth value. This contribution varies, however, between sectors and countries-within-sectors and is sometimes signicantly smaller than the amount invested. This leads to the conclusion that intangible investments cannot always be capitalized at full costs, and that metrics are needed that complement financial statements, rather than replace them.

Suggested Citation

  • Sjoerd van Bekkum, 2008. "Do Intangible Investments Create Value? Comparing Capitalization Rates of Listed Firms," Economics Program Working Papers 08-05, The Conference Board, Economics Program.
    • Handle: RePEc:cnf:wpaper:0805
    as

    Download full text from publisher

    File URL: http://www.conference-board.org/economics/workingpapers.cfm?pdf=E-0032-08-WP
    File Function: First version, 2008
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hannu Piekkola, 2016. "Intangible Investment and Market Valuation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(1), pages 28-51, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cnf:wpaper:0805. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: A Ozyildirim (email available below). General contact details of provider: https://edirc.repec.org/data/confbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.