Differences in the Value Relevance of Identifiable Intangible Assets Acquired in Business Combinations

Intangible Assets and Goodwill in the context of Business Combinations. An industry study

Intangible Assets

Intangible assets are a very economically significant asset class yet are largely excluded by accounting conventions from corporate balance sheets. Ownership (or control) of intangible assets can allow firms to differentiate their offerings to customers and establish some degree of competitive advantage. However, intangibles do not, apart from a few cases of licensing, generate value on their o...

Derivative Ideas and the Value of Intangible Assets∗

We build a general equilibrium model in which growth is driven by two invention types: fundamental ideas that cause creative destruction, and derivative ideas that enhance the value of existing inventions. The model provides a new mapping from microeconomic, patent data to aggregate TFP growth and the aggregate value of privately owned knowledge. We show how to measure the frequency of derivati...

Complementary Innovations and the Value of Intangible Assets

We build a general equilibrium model where growth is driven by new ideas that can have varying degrees of complementarity with previous innovations. The model links micro-level complementarities with the aggregate value of intangible capital and provides a new mapping between measures of knowledge accumulation found in patent data and aggregate TFP growth. We show how to measure the degree of c...

Determinants of intangible assets value: The data mining approach

It is very important for investors and creditors to understand the critical factors affecting a firm’s value before making decisions about investments and loans. Since the knowledge-based economy has evolved, the method for creating firm value has transferred from traditional physical assets to intangible knowledge. Therefore, valuation of intangible assets has become a widespread topic of inte...