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Economic Properties of Intangible Assets.The Value Paradox

Author

Listed:
  • Violeta SÃCUI

    (West University of Timisoara, Romania)

  • Diana SALA

    (West University of Timisoara, Romania)

Abstract

The importance of intangible assets is the distinguishing feature of the new economy. In knowledge based economies the intangible elements of firms are becoming fundamental determinants of firm current and future competitiveness as well as of firm value and growth. Despite their evident capacity to create value a big part of intangible assets are not reflected in the firm` s balance sheets. The elements that are responsible for this situation are the economic properties of intangible assets that are different by the economic properties of tangible assets. In this working paper are presented these properties that make intangible assets investments more risky than tangible assets investments.

Suggested Citation

  • Violeta SÃCUI & Diana SALA, 2012. "Economic Properties of Intangible Assets.The Value Paradox," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(5), pages 793-803, December.
    • Handle: RePEc:rom:rmcimn:v:13:y:2012:i:5:p:793-803
    as

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    File URL: https://rmci.ase.ro/no13vol5/08.pdf
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    References listed on IDEAS

    as
    1. Zvi Griliches, 1998. "Productivity, R&D, and the Data Constraint," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 347-374, National Bureau of Economic Research, Inc.
    2. Leonard I. Nakamura, 2010. "Intangible Assets And National Income Accounting," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 135-155, June.
    3. L. C. Hunter & Elizabeth Webster & Anne Wyatt, 2009. "Identifying Corporate Expenditures on Intangibles Using GAAP," Melbourne Institute Working Paper Series wp2009n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    investments; intangible assets; valuation; measurement; economic properties; company;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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