Showing papers in "Journal of Intellectual Capital in 2011"
TL;DR: In this article, the authors examined the impact of intellectual capital on firms' market value and financial performance and concluded that there is a statistically significant relationship between human capital efficiency and financial performances.
Abstract: Purpose – Intellectual capital (IC) shows a significant growing acceptance as a worthy topic of academic investigation and practical implication. The purpose of this study is to examine the impact of IC on firms' market value and financial performance.Design/methodology/approach – The empirical data were drawn from a panel consisting of 96 Greek companies listed in the Athens Stock Exchange (ASE), from four different economic sectors, observed over the three‐year period of 2006 to 2008. Various regression models were examined in order to test the hypotheses included in the proposed conceptual framework.Findings – Results failed to support most of the hypotheses; only concluding that there is a statistically significant relationship between human capital efficiency and financial performance. Despite the fact that IC is increasingly recognised as an important strategic asset for sustainable corporate competitive advantage, the results of the present study give rise to various arguments, criticism and furthe...
499 citations
TL;DR: In this paper, the effect of intellectual capital (IC) has on firm performance of Australian companies is examined using Pulic's value added intellectual coefficient (VAIC) and its components (human, structural and capital employed efficiencies (HCE, SCE, CEE)).
Abstract: Purpose – This study aims to examine the effect intellectual capital (IC) has on firm performance of Australian companies.Design/methodology/approach – Quantitative data are collected for Australian companies listed between 2004 and 2008. IC is measured using Pulic's value added intellectual coefficient (VAIC) and its components (human, structural and capital employed efficiencies (HCE, SCE, CEE)). Direct and moderating relationships between VAIC, HCE, SCE, and CEE and four measures of performance are statistically analysed.Findings – The results suggest that there is a direct relationship between VAIC and performance of Australian publicly listed firms, particularly with CEE and to a lesser extent with HCE. A positive relationship between HCE and SCE in the prior year and performance in the current year is also found. However evidence also suggests the possibility of an alternative moderating relationship between the IC components of HCE and SCE with physical and financial capital (CEE) which impacts on ...
422 citations
TL;DR: In this article, the authors analyzed the validity of the value added intellectual coefficient (VAIC) method as an indicator of intellectual capital and tested the hypothesis according to which VAIC correlates with a company's stock market value.
Abstract: Purpose – The purpose of this study is to analyse the validity of the value added intellectual coefficient (VAIC) method as an indicator of intellectual capital.Design/methodology/approach – The paper describes VAIC through its calculation formulae and aims to establish what exactly it is that the method measures. It also looks in detail at how intellectual capital is understood in the method, and discusses its conceptual confusions. Furthermore, the paper tests the hypothesis according to which VAIC correlates with a company's stock market value, and reflects the contradictory results of earlier studies.Findings – The analyses show, first, that VAIC indicates the efficiency of the company's labour and capital investments, and has nothing to do with intellectual capital. Furthermore, the calculation method uses overlapping variables and has other serious validity problems. Second, the results do not lend support to the hypothesis that VAIC correlates with a company's stock market value. The main reasons b...
279 citations
TL;DR: In this article, a comprehensive theoretical framework for interpreting voluntary IC disclosure practices by organizations is presented, which includes three concepts: to reduce information asymmetry, to discharge accountability to various stakeholders, and to signal organizational legitimacy and excellence to society.
Abstract: Purpose – This paper aims to construct a comprehensive theoretical framework for interpreting voluntary IC disclosure practices by organizations.Design/methodology/approach – Four most‐commonly used theories in the area, namely agency theory, stakeholder theory, signalling theory, and legitimacy theory, were integrated in terms of the interrelated concepts relating to voluntary IC disclosure.Findings – The constructed theoretical framework includes three concepts: to reduce information asymmetry; to discharge accountability to various stakeholders; and to signal organizational legitimacy and excellence (or superior quality) to society, which are seen as motivations for organizations to disclose their IC on a voluntary basis.Research limitations/implications – The framework ignores some other theoretical perspectives which are also relevant to voluntary IC disclosure; the framework is not justified by any empirical evidence.Originality/value – This research is the first attempt to construct a comprehensive...
215 citations
TL;DR: In this article, the mediating effect of competitive advantage in the relationship between intellectual capital and financial performance in Uganda's micro finance institutions was examined, and it was shown that competitive advantage is a significant mediator in the association between Intellectual Capital and Financial performance.
Abstract: Purpose – The purpose of this paper is to examine the mediating effect of competitive advantage in the relationship between intellectual capital and financial performance in Uganda's microfinance institutions. The major aim is to establish the role of competitive advantage in the relationship between intellectual capital and firm performance.Design/methodology/approach – The paper adopts MedGraph program (Excel version), Sobel tests and the Kenny and Boran approach to test for mediation effects.Findings – Competitive advantage is a significant mediator in the association between intellectual capital and financial performance and boosts the relationship between the two by 22.4 percent in Ugandan microfinance institutions. Further findings confirmed a partial type of mediation between the intellectual capital, competitive advantage and financial performance.Research limitations/implications – Only a single research methodological approach was employed and future research through interviews could be undertak...
204 citations
TL;DR: This paper aims to empirically investigate the plausible KM‐IC two‐way relationship in the Egyptian software industry using a cross‐sectional field survey strategy and two sets of hypotheses describing the predicted mutual influence between KM and IC.
Abstract: Purpose – Knowledge management (KM) and intellectual capital (IC) are believed to influence each other, and the relationship between the two constructs is of vital importance to organizational effectiveness. While a two‐way relationship between KM and IC is conceivable, the relevant empirical research has yet to produce satisfactory evidences on the nature of the relationship between the two constructs. This paper aims to empirically investigate the plausible KM‐IC two‐way relationship in the Egyptian software industry.Design/methodology/approach – This research adopts a cross‐sectional field survey strategy. It adopts a research model depicting a two‐way relationship between KM processes and IC dimensions. Two sets of hypotheses describing the predicted mutual influence between KM and IC are proposed. An instrument was adopted to collect the required data set on KM processes and IC dimensions from 38 Egyptian software firms. The partial least squares (PLS) procedure was used to assess the measurement mod...
152 citations
TL;DR: In this paper, the authors investigated whether intellectual capital has an impact on the financial aspects of organizational performance as well as attempting to identify the IC components that are associated with corporate financial performance indicators that signal organizational growth.
Abstract: Purpose – This paper aims to investigate whether intellectual capital (IC) has an impact on the financial aspects of organizational performance as well as attempting to identify the IC components that are associated with corporate financial performance indicators that signal organizational growth.Design/methodology/approach – This study drew on financial data from publicly available annual reports of all the constituent companies of the Hang Seng Index of the Hong Kong Stock Exchange for the years 2001‐2009. Following the value added intellectual coefficient™ (VAIC) methodology, regression models were constructed to examine the relationships between IC and the corporate financial performance indicators.Findings – Evidence was found to suggest that IC, as measured by VAIC, was positively associated with profitability of businesses. In particular, structural capital, as a key component of IC, played a notable part in enhancing corporate profitability, and showed a growing trend in its significance. Empirica...
149 citations
TL;DR: In this article, the authors analyse the management teams' views regarding different aspects related to the disclosure of non-financial information in the annual report, focusing on the following aspects: incentive, quantity, focus, use of non‐financial key performance indicators (KPIs) and trends.
Abstract: Purpose – The purpose of this paper is to analyse the management teams' views regarding different aspects related to the disclosure of non‐financial information in the annual report. The focus is on the following aspects: incentive, quantity, focus, use of non‐financial key performance indicators (KPIs) and trends.Design/methodology/approach – The data are based on a comprehensive questionnaire survey addressed to investor‐relation managers (IRMs) at the largest companies listed on the Stockholm Stock Exchange.Findings – The study confirms an increasing focus of non‐financial information related to intangible assets in corporate disclosure. This increase appears to be both regulatory and demand driven. Encouraging indeed is that management teams seem to have acknowledged the importance not only to describe the less tangible values per se, but also to explain the roles they play in the value‐creation process and in corporate strategy. Furthermore, the study reveals a trend shift from research and developme...
143 citations
TL;DR: In this article, the authors investigate the relationship between organizational knowledge assets and the innovation capability of a manufacturing firm, based on a questionnaire on a sample of 251 Spanish high and medium-high manufacturing firms.
Abstract: Purpose – Organizational knowledge assets are key organizational factors responsible for firm innovation, as well as effective management. Traditionally, a good piece of research takes the innovation processes from an external perspective, leaving aside the internal complexity that characterizes innovation dynamics. Nevertheless, the innovation capability of a certain firm depends very closely on the intellectual assets and organizational knowledge that it possesses, as well as on its ability to deploy them. In this sense, this paper aims to test empirically the relationships between organizational knowledge assets and the innovation capability of the firm.Design/methodology/approach – The data collection was carried out through a questionnaire on a sample of 251 Spanish high and medium‐high manufacturing firms. Exploratory and confirmatory factor analyses and multiple linear regressions were also used.Findings – Based on the literature review, this work explores the nature and measurement of organization...
129 citations
TL;DR: In this article, a multivariate model is presented where multiple relations are tested between different components of intellectual capital and performance, and the model is tested first on a unique sample of 267 SMEs and second on two subsamples where SMEs are grouped according to their strategic profile.
Abstract: Purpose – The purpose of this paper is to shed light on the nature of intellectual capital in small to medium‐sized enterprises (SMEs) and how it is linked to strategy and performance.Design/methodology/approach – Using structural equations, a multivariate model is presented where multiple relations are tested between different components of intellectual capital and performance. The model is tested first on a unique sample of 267 SMEs and second on two subsamples where SMEs are grouped according to their strategic profile.Findings – Findings confirm that SMEs that adopt different strategies organize their intellectual capital in a particular and adapted way. When an attempt is made to link intellectual capital components to performance, it is noticed that the latter is strategy specific, just as the variables that influence performance. Prospectors dominate defenders on most intellectual capital components.Research limitations/implications – Use of secondary data may provide less precise results that coul...
113 citations
TL;DR: In this article, a measure of intellectual capital disclosure based on a content analysis of the text in annual reports sampled from listed companies in Britain, Australia, Hong Kong and Singapore, is incorporated in the models to examine the direct and moderating roles of ICD in a firm's valuation.
Abstract: Purpose – This study aims to examine whether or not listed companies' disclosure of intellectual capital is value‐relevant in share markets and to assess its moderating role in the value‐relevance of reported earnings and equity following the adoption of international financial reporting standards (IFRS).Design/methodology/approach – A measure of intellectual capital disclosure (ICD), based on a content analysis of the text in annual reports sampled from listed companies in Britain, Australia, Hong Kong and Singapore, is incorporated in the models to examine the direct and moderating roles of ICD in a firm's valuation.Findings – The results reveal that ICD is positively associated with market price (i.e. has value relevance) in companies in two of the four countries and in non‐traditional industries. Further, the incremental value relevance of earnings and net assets is mostly non‐significant; however, interaction of these variables with ICD considerably increases the basic coefficients and the explanator...
TL;DR: In this article, an empirical study was conducted to discover the extent to which the different users of university accounting information are now demanding information concerning intellectual capital in order to make the right decisions.
Abstract: Purpose – This paper aims to demonstrate the need for universities to include information on intellectual capital in their accounting information system.Design/methodology/approach – An empirical study was conducted to discover the extent to which the different users of university accounting information are now demanding information concerning intellectual capital in order to make the right decisions. To this end a questionnaire was designed and sent to all the members of the Social Councils of Spain's public universities.Findings – The findings show the opinion of university accounting information users regarding the need for universities to publish information on their intellectual capital in order to make the current model of university accounting information more relevant.Practical implications – The results of this research show the intangible elements about which universities should provide information in order to satisfy their users' new information demands.Originality/value – No previous research ...
TL;DR: In this article, the authors investigate inter firm intellectual capital (IC) disclosures and its variations in top 20 listed pharmaceutical companies in India, study the category wise and element wise IC disclosures (ICD), find out the impact of ICD on the creation of IC in monetary terms, find out correlation between IC valuation and its disclosure, and test significance of correlation.
Abstract: Purpose – This paper aims to investigate inter firm intellectual capital (IC) disclosures and its variations in top 20 listed pharmaceutical companies in India, study the category wise and element wise IC disclosures (ICD), find out the impact of ICD on the creation of IC in monetary terms, find out correlation between IC valuation and its disclosure, and test significance of correlation.Design/methodology/approach – This is an exploratory and empirical study of ICD by sample companies in 2009 using content analysis. IC is valued as market value minus book value. Five‐point scale (0‐4), mean disclosure score, range, Chi‐ squares, Karl Pearson's correlation and Student's t‐test are used for analysis and interpretation.Findings – Although top 20 companies of knowledge‐led industry, ICD are low, narrative and varying significantly among companies. ICD score varies in range of 4 to 36 against expected score of 96. External capital with mean score of 18.78 is the most disclosed category. Brands and business co...
TL;DR: In this article, the specific nature of intellectual capital influences the valuation process, in practice, and how it impacts on some of the qualities of its value, including objectivity, consistency, comparability and understandability.
Abstract: Purpose – The aim of this study is to reflect on how the specific nature of intellectual capital influences the valuation process, in practice, and how it impacts on some of the qualities of its value.Design/methodology/approach – This study is based on a case study (“Ankon”) developed by adopting a modest interventionist approach.Findings – This study highlights the relevance of the intellectual capital valuation process in spite of the intellectual capital value per se. In fact, while intellectual capital value seems to present a limited level of objectivity, consistency, comparability and understandability, its valuation process can be considered an opportunity to visualise and understand intellectual capital and its influence on financial performance. In other words, intellectual capital valuation can be considered as a practice useful to crave the attention of the managers on intellectual capital in action.Research limitations/implications – The main limitations of this study are related to the parti...
TL;DR: In this article, a case study of the Land and Property Authority of NSW (Lands) is presented, where the authors examine the adage "If it can't be measured, it cannot be managed" by presenting a case-study of intellectual capital practice over six years at an internationally recognised public sector IC leader.
Abstract: Purpose – This paper seeks to examine the adage “If it can't be measured, it can't be managed” by presenting a case study of intellectual capital (IC) practice over six years at an internationally recognised public sector IC leader – the Land and Property Authority of NSW (Lands).Design/methodology/approach – The paper uses the case study method to examine critically over six years of research based on semi‐structured interviews and internal and external documents.Originality/value – During this time Lands achieved national and international recognition for its IC management and reporting practices in the absence of a definitive set of IC measures. The authors show how Lands struggled with an inability to develop a specific set of IC measures to communicate its success, while still effectively communicating the impact of its IC practices through its annual reports and IC statements based on an ongoing narrative.Findings – Lands demonstrated that it was able to meet the challenges associated with transitio...
TL;DR: In this article, the authors investigate the relationship between organizational characteristics (culture and climate) and management systems in the Middle East (Iran and Lebanon) and Canada and find that both culture and climate play significant roles in developing management systems for IC.
Abstract: Purpose – This study aims to empirically investigate the role of organizational culture and climate in supporting intellectual capital (IC) management systems. Specifically, it seeks to investigate the relationship between organizational characteristics (culture and climate) and IC management systems in the Middle East (Iran and Lebanon) and Canada.Design/methodology/approach – Data were gathered via a survey instrument and statistical analysis was used to test for significance between dependent and independent variables. Then a two‐stage hierarchical multiple regression was used to test for the nature and effects of country of origin as a moderating variable.Findings – The findings suggest that both culture and climate play significant roles in developing management systems for IC. In addition, for country, when organizational climate improves, Middle Eastern respondents perceived an even greater improvement in IC management systems compared to their Canadian counterparts.Originality/value – There is lim...
TL;DR: A methodology that enables the generation of valid and reliable inferences on what and how intellectual capital (IC) information is communicated by sell‐side analysts in their research reports is described.
Abstract: Purpose – The purpose of this paper is to describe a methodology that enables the generation of valid and reliable inferences on what and how intellectual capital (IC) information is communicated by sell‐side analysts in their research reports.Design/methodology/approach – The method described in this paper involves content‐analysing initiating coverage analyst reports using a four‐dimensional IC coding framework and a detailed coding instrument, which is founded in the literature and indigenous to analyst reports. The paper explicates methodological decisions associated with content analysis: selecting the appropriate sampling unit; recording unit and measurement unit; developing the categorisation scheme and coding instrument; the need for test coding; the approach to data collection; and assessment of reliability and validity.Findings – The methodology described is applied to a sample of analyst reports to illustrate inferences that can be drawn on what and how IC information is communicated in analyst...
TL;DR: In this paper, the authors investigated the relationship between intangible investments (R&D, advertising, training, software acquisitions and quality) and the ability of firms to generate future OCF (hereafter cash flow from operations).
Abstract: Purpose – The main purpose of this study is to investigate the relationship between intangible investments (R&D, advertising, training, software acquisitions and quality) and the ability of firms to generate future OCF (hereafter cash‐flow from operations).Design/methodology/approach – The authors developed dynamic panel models to estimate the relationship between intangible investments and three subsequent periods cash flows. These models are estimated using generalized method of moments (GMM), on a panel of 300 observations related to 50 Tunisian manufacturing firms and six years of data (2001‐2006).Findings – The findings show a positive and significant effect of intangible investments on future operating cash flows. First, this result confirms the main hypothesis of resource based view (RBV). Second, it is found that investments in R&D, quality, and advertising have significant effects on future cash flows from operations. While the effect of R&D activities and quality persists until the third lagged ...
TL;DR: In this article, the authors focus on the interdependent impact of ownership on corporate value through the mediating role of intellectual capital (IC), and find that the relationship between ownership and corporate value mainly depends on industry characteristics and the nature of proxies for intellectual capita.
Abstract: Purpose – Previous empirical studies on the nature of the relationship between ownership and corporate value have produced mixed results. Meanwhile, effective management of knowledge‐based intellectual capital has become a key factor to corporate success, both in firm performance and corporate value. Thus, this paper aims to reexamine the link among ownership, proxies for intellectual capital and corporate value in the emerging Taiwan market.Design/methodology/approach – Using two‐stage least square estimation of panel data in a simultaneous equations framework, the authors focus on: What is the interdependent impact of ownership on corporate value through the mediating role of intellectual capital (IC)? Does ownership directly or indirectly (i.e. via IC) influence corporate value? Does it persist across industries?Findings – The empirical results suggest that the relationship between ownership and corporate value mainly depends on industry characteristics and the nature of proxies for intellectual capita...
TL;DR: This paper investigated whether the political setting (civil war versus temporary truce) in a country has an influence on firms' current narrative, visual, and numerical intellectual capital disclosure being included in the current market value of equity.
Abstract: Purpose – The purpose of this paper is to investigate whether the political setting (civil war versus temporary truce) in a country has an influence on firms' current narrative, visual, and numerical intellectual capital disclosure being included in the current market value of equity.Design/methodology/approach – Using content analysis for data generation, this study identifies narrative, visual, and numerical intellectual capital disclosure in firms' annual reports. Financial data were obtained from firms' annual reports and the stock exchange. Fixed effect panel regression was conducted separately for the civil war period and temporary truce period.Findings – The paper finds that during the period entirely beset by civil war, the current market value of equity includes net book value and current earnings only, and does not include narrative, visual, or numerical intellectual capital disclosure. During the period of temporary truce, the current market value of equity includes net book value, current earn...
TL;DR: In this paper, a 360-degree peer review is proposed as a method of validating self-reporting in human capital value measurement (HCVM) surveys, which is based on a survey of a section of the Royal Australian Navy.
Abstract: Purpose – The purpose of this paper is to address the subjectivity inherent in existing methods of human capital value measurement (HCVM) by proposing a 360‐degree peer review as a method of validating self‐reporting in HCVM surveys.Design/methodology/approach – The case study is based on a survey of a section of the Royal Australian Navy. The sample was 118 respondents, who were mainly engineering and technical workers, and included both civilian and uniform.Findings – The research may be summarised in three main findings. First, it confirms previous research demonstrating that correlations between self‐ and other‐ratings tend to be low. However, while previous research has found that self‐rating tends to be higher than other‐rating, it was found to be the opposite: other‐rating was higher than self‐rating. Second, personality is discounted as an influencing variable in self‐rating of knowledge. Third, there are patterns in the size of the discrepancy by knowledge dimension (i.e. employee capability, emp...
TL;DR: In this paper, the authors investigate preparers' and users' perceptions on the usefulness of intellectual capital (IC) information disclosed in annual reports of listed companies and examine the significant differences in the perceptions of usefulness of IC information and IC categories of the preparers and users.
Abstract: Purpose – This paper aims to investigate preparers' and users' perceptions on the usefulness of intellectual capital (IC) information disclosed in annual reports of listed companies. In addition, it aims to examine the significant differences in the perceptions of usefulness of IC information and IC categories of the preparers and users.Design/methodology/approach – The paper used a questionnaire survey method to collect the data (i.e. primary data). The questionnaires were distributed to companies (i.e. chief financial officers and accountants) as preparers, and brokers (i.e. analysts) and banks (i.e. credit officers) as users. The data were analysed using descriptive statistics, t‐test and ANOVA.Findings – The paper found that both preparers and users perceive the IC information disclosed in the annual reports of listed companies to be useful for their decision making purposes. Furthermore, the paper found that there are significant differences in the perception of usefulness between preparers and users...
TL;DR: In this paper, the authors present a focus for identifying the convergence between the theory of the intellectual capital of nations and that of the National Systems of Innovation from the literature of innovation systems, with the aim of providing a robust theoretical framework to explore the drivers of intangibles and the policies which foster competitiveness through the development of the national intellectual capital platforms.
Abstract: Purpose – This paper aims to present a focus for identifying the convergence between the theory of the intellectual capital of nations and that of the National Systems of Innovation from the literature of innovation systems, with the aim of providing a more robust theoretical framework to explore the drivers of intangibles and the policies which foster competitiveness through the development of the national intellectual capital platforms.Design/methodology/approach – Selecting 28 indicators which best fit the analyzed theoretic principles and taking into account the member countries of the European Union as a sample (15) with the data taken from the IMD, a simple analysis of the seven‐year (2000‐2006) window was carried out to compare the intangibles pointed out in the two aforementioned perspectives.Findings – The homogeneity of the results using models of measurement of intellectual capital of countries with those obtained through the models of the National Systems of Innovation prove the considerable c...
TL;DR: In this paper, a dyadic inter-firm partnership with three different types of value-creating logics (value chain, value shop, and value network) is analyzed.
Abstract: Purpose – Previous studies on strategic alliance and network have not paid sufficient attention to resource fit based on intellectual capital perspective. This study aims at understanding the input resources and transformation in a dyadic inter‐firm partnership, given different types of value logics.Design/methodology/approach – This study adopts a multiple case study approach by in‐depth interviews in three inter‐firm cooperative cases, which represent three different types of value‐creating logics – value chain, value shop, and value network. This study applies the intellectual capital navigator (ICN) to analyze the resource transformation among human capital, organizational capital, relational capital, physical capital, and monetary capital that was produced by two sides in three inter‐firm partnerships.Findings – The results show that: given value chain logic, while the inter‐firm partnership emphasizes standardization, efficiency and economy of scale, resource fit in physical, monetary, and organizat...
TL;DR: In this article, the authors contribute to the theory of intellectual capital with the new IC valuation method based on the economic value added (EVA®) concept as well as to present the Innovation Funnel, which is a useful management method and tool from which companies would benefit.
Abstract: Purpose – The main purpose of this study is to contribute to the theory of intellectual capital (IC) with the new IC valuation method based on the economic value added (EVA®) concept as well as to present the Innovation Funnel, which is a useful management method and tool from which companies would benefit.Design/methodology/approach – The paper first explains the links and differences between IC and intellectual assets (IAs) and aims at improving the reader's understanding of the share of the two classes of shareholders, monetary capital investors and intellectual capital investors, of the innovative start‐ups. The paper provides practical guidance for use in IC valuation and financial management of innovation rather than a theoretical framework, and is based on the literature on innovation, IC, corporate finance as well as the practical experience of a few early stage venture capitals with whom the author cooperates.Findings – The findings show a way of calculating fair share of an innovative company's ...
TL;DR: In this article, an ontological proposition for the intellectual capital domain is proposed, which aims to serve the epistemological requirements towards the development of a common accepted generic IC theory.
Abstract: Purpose – This study attempts to formulate an ontological proposition for the intellectual capital (IC) domain. This study is motivated by the debate of contemporary thinking for different IC research streams (IC1‐ostensive versus IC2‐performative) and their different ontological perceptions for IC. The proposed ontological proposition aims to serve the epistemological requirements towards the development of a common accepted generic IC theory.Design/methodology/approach – The formulation of the ontology for the IC domain is based on contemporary tools within the fields of ontology and conceptual modelling. The principal dimensions of the ontology for the IC domain are identified following the directions of the Sowa's generalised theory for ontological frameworks. For each dimension, a generic entity is defined by drawing inferences from disciplines relevant to the contemporary IC inquiry. The relationships between the generic entities are modelled with the semantic representations of General Systems Theo...
TL;DR: In this paper, the authors investigated the potential relationship between the stock market announcement of a brand's buy and sell agreement, and the stock price trend, and found that the mere occurrence of a purchase/sale operation for this asset only occasionally leads to a reaction in the market; at any rate, the stock's volatility quite rarely depends solely on such an occurrence.
Abstract: Purpose – This paper aims to investigate the potential relationship between the stock market announcement of a brand's buy and sell agreement, and the stock price trend.Design/methodology/approach – The research question was approached using a GARCH‐based statistical analysis on a sample of companies listed on the Mibtel (Italian stock exchange) that have a brand among their assets and have undertaken a purchase/sale from 2006 to 2008.Findings – Although the brand is believed to be an important value driver, the mere occurrence of a purchase/sale operation for this asset only occasionally leads to a reaction in the market; at any rate, the stock's volatility quite rarely depends solely on such an occurrence.Research limitations/implications – The statistical relevance of the analysis is limited by the observational data that it was possible to analyse. In particular, to give a positive conclusion about the influence of the brand's buy and sell agreements on a stock's return, it is necessary to have a time...
TL;DR: In this article, the authors present a part of the French intangible assets measurement approach, which has been published by the French Intangible Assets Observatory, and propose a due diligence approach, using the French methodology and applies it to the insurance sector.
Abstract: Purpose – According to several authors 50 per cent of mergers and acquisitions (M&A) operations destroy value. The aim of this paper is to study the reasons why it happens and to seek to reveal that intangible assets, which are increasingly important in today's economy, must be better assessed during the due diligence phase.Design/methodology/approach – The authors present a part of the French intangible assets measurement approach, which has been published by the French Intangible Assets Observatory. The methodology proposes an extended balance sheet which is an interesting addition to the IAS‐IFRS intangible standard. It identifies 12 classes of intangible assets including human capital and customer capital.Findings – The paper proposes a due diligence approach, using the French methodology and applies it to the insurance sector.Research limitations/implications – This paper is not an academic paper. However, a significant research program is now underway in France. Academic publications are expected to...