The mediating role of Artificial Intelligence on the relationship between intangible assets and equity market value: evidence from global context

marwa Rabe Mohamed Ali Elkmash (), Sherif El-Halaby () and Sherif Nagy Mohamed ()
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marwa Rabe Mohamed Ali Elkmash: October University for Modern Sciences and Arts, Department of Accounting, Faculty of Management Sciences
Sherif El-Halaby: Department of accounting, College of Business Administration, Ajman University
Sherif Nagy Mohamed: Department of Accounting, Economics and Business Administration, Innovation University

Humanities and Social Sciences Communications, 2025, vol. 12, issue 1, 1-14

Abstract: Abstract While intangible assets (IA) are key drivers of equity market value (EMV) in the knowledge economy, the mediating role of artificial intelligence (AI) in this relationship varies globally. This study investigates the assumption that the value-creating interaction between intangible assets and artificial intelligence is uniform worldwide. The study tests the mediating role of artificial intelligence on the relationship between intangible assets and equity market value, and examines the moderator role of market type (Emerging vs. Developed). Using a longitudinal panel data (2020–2024) of a global sample from the Communication & Information Technology firms, we analyzed data using Generalized Method of Moments (GMM) regression. The results confirm the significant role of AI in the relationship between IA and EMV, and reveal a key difference between the market groups. The impact of IA and EMV on AI adoption is more transparent and more efficient in Developed Markets (DM). Similarly, the analysis reveals two key findings: first, AI has a substantial direct impact on developed-market (DM) firms; second, more critically, the synergistic interaction between AI and IA is significantly enhanced in this context. Consequently, our models explain a larger proportion of the variance in DM firm valuation, offering robust empirical confirmation of the hypothesized valuation gap. This study provides strong evidence that the resource-based view should be understood within the context of market-type frameworks. We identify the “IA-AI valuation gap” and outline specific strategic imperatives: Emerging Market (EM) firms need to focus on developing foundational (IA) before fully integrating deep AI. In contrast, Developed Market (DM) firms should concentrate on using AI to enhance the value of their existing IA. Policymakers should address this gap by strengthening key institutional supports, such as intellectual property protection and digital infrastructure.

Date: 2025
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DOI: 10.1057/s41599-025-06146-3

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