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Intangible-driven value creation: supporting and obstructing factors

Author

Listed:
  • Elena Shakina

    (National Research University Higher School of Economics,)

  • Maria Molodchik

    (National Research University Higher School of Economics,)

Abstract

This study investigates the factors that support or obstruct market value creation through intangible capital. We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyze relationship between intangible-driven outperforming of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro, meso and micro level. We suppose that the process of value creation is confined not only by companies’ performance. It is established in our study that investment attractiveness is affected by intangibles. Our empirical research is conducted on more than 900 companies from Europe and US during the period of 2005-2009. We found out in this study that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making

Suggested Citation

  • Elena Shakina & Maria Molodchik, 2013. "Intangible-driven value creation: supporting and obstructing factors," HSE Working papers WP BRP 24/FE/2013, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:24/fe/2013
    as

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    File URL: http://www.hse.ru/data/2013/12/26/1341261709/24FE2013.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    intangibles; economic value added; market value; empirical study.;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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