How Intangible Dynamics Influence Firm Value

DOI: 10.4236/jmf.2013.32032   PDF   HTML     5,284 Downloads   8,069 Views   Citations


This paper analyzes the effect of changes in intangible assets on the relationship between the market value of a firm and its book value from a conservative accounting perspective. We find the value of intangible assets to have a positive association with the book value of operating assets and cash dividends. Firms with higher values related to intangible assets generally have more book value related to operation assets and cash dividends. Our evidence indicates that intangible assets are value relevant, i.e., they are associated with the market value of a firm.

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N. Shih, "How Intangible Dynamics Influence Firm Value," Journal of Mathematical Finance, Vol. 3 No. 2, 2013, pp. 323-328. doi: 10.4236/jmf.2013.32032.

Conflicts of Interest

The authors declare no conflicts of interest.


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