Showing papers on "Intangible asset published in 1993"
Posted Content•
TL;DR: The relative stock market valuation of the intangible asset created by RD investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period as discussed by the authors.
Abstract: The relative stock market valuation of the intangible asset created by RD investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period. At the same time, the relative market valuation of advertising expenditure has risen to parity with RD spending. This finding is based on a large comprehensive panel of about 2500 U.S. industrial corporations, covering eighty to ninety percent of industrial RD performed by U.S. firms and is robust to industry controls, sample selection, and various specification tests. Possible explanations for the finding are discussed, but definitive answers await future research.
59 citations
Posted Content•
TL;DR: In this paper, the authors show that Tobin's q and firm diversification are negatively related, and that firms that increase their number of segments have lower q than firms that keep their numbers of segments constant.
Abstract: In this paper, we show that Tobin's q and firm diversification are negatively related. This negative relation holds for different diversification measures and when we control for other known determinants of q. We show further that diversified firms have lower q's than equivalent portfolios of specialized firms. This negative relation holds throughout the 1980s in our sample. Finally, it holds for firms that have kept their number of segments constant over a number of years as well as for firms that have not. In our sample, firms that increase their number of segments have lower q's than firms that keep their number of segment constant. Our evidence is consistent with the view that firms seek growth through diversification when they have exhausted internal growth opportunities. We fail to find evidence supportive of the view that diversification provides firms with a valuable intangible asset
7 citations
01 Jan 1993
1 citations
01 Jan 1993
TL;DR: The relative stock market valuation of the intangible asset created by RD investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period as mentioned in this paper.
Abstract: The relative stock market valuation of the intangible asset created by RD investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period. At the same time, the relative market valuation of advertising expenditure has risen to parity with RD spending. This finding is based on a large comprehensive panel of about 2500 U.S. industrial corporations, covering eighty to ninety percent of industrial RD performed by U.S. firms and is robust to industry controls, sample selection, and various specification tests. Possible explanations for the finding are discussed, but definitive answers await future research.
1 citations