I.T. Investment and intangibles: evidence from banks

Alfredo Martin-Oliver and Vicente Vicente Salas-Fumás ()
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Vicente Vicente Salas-Fumás: Universidad de zaragoza

No 1020, Working Papers from Banco de España

Abstract: This paper models the investment behaviour of a multi-asset firm with market power that accumulates valuable intangible assets to complement the IT capital. The investment model is estimated using data from Spanish banks on assets of different nature: material (branches, financial), immaterial (advertising and IT) and intangible (training of workers). The paper estimates that the representative bank spends five additional Euros per Euro invested in IT-related assets in complementary intangible assets or, equivalently, intangibles amount to approximately 10% of the economic value of the representative bank. The remaining economic value is distributed between 28% from rents attributed to market power, and 62% to the cost of market-purchased assets.

Keywords: multi-asset firm; investment; intangible assets; banks (search for similar items in EconPapers)
JEL-codes: D92 G21 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-06
New Economics Papers: this item is included in nep-acc and nep-ban
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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... o/10/Fic/dt1020e.pdf First version, June 2010 (application/pdf)

Related works:
Journal Article: IT INVESTMENT AND INTANGIBLES: EVIDENCE FROM BANKS (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:1020

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