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Value relevance of customer-related intangible assets

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  • Bauman, Mark P.
  • Shaw, Kenneth W.

Abstract

This study examines the stock market's valuation of customer-related intangible assets for a sample of publicly-traded U.S. firms. Customer-related intangible assets are found to be positively associated with equity prices, but valued at a discount relative to goodwill. These results suggest that value-relevant information is lost if customer-related intangible assets are subsumed into goodwill rather than being reported separately. This evidence can be useful to standard setters potentially considering extending to public companies a recent FASB Accounting Standards Update allowing private companies not to recognize separately from goodwill certain customer-related intangible assets.

Suggested Citation

  • Bauman, Mark P. & Shaw, Kenneth W., 2018. "Value relevance of customer-related intangible assets," Research in Accounting Regulation, Elsevier, vol. 30(2), pages 95-102.
    • Handle: RePEc:eee:reacre:v:30:y:2018:i:2:p:95-102
    DOI: 10.1016/j.racreg.2018.09.010
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