THE IMPACT OF INTANGIBLE ASSETS ON FINANCIAL AND GOVERNANCE POLICIES: A LITERATURE REVIEW
Júlio Martins () and
Sandra Alves ()
Additional contact information
Júlio Martins: School of Economics of the University of Porto
Sandra Alves: ISCA – Institute Superior of Accounting of the University of Aveiro
Portuguese Journal of Management Studies, 2010, vol. XV, issue 1, 87-107
This paper provides a literature review about the impact of intangible assets on the design of corporate financial and governance policies. Intangible assets show a set of characteristics – namely, high levels of risk and uncertainty, firm-specificity, human capital intensity, low observability and long-term nature - that make them markedly distinct from other categories of assets. These characteristics are likely to have a substantial impact on the levels of agency costs of debt (asset-substitution and under-investment problems) and equity (hidden action and hidden information problems), information asymmetry levels between investors and managers, transaction costs of debt and equity, and non-debt tax shields. The severity of these effects is likely to influence the maximisation of managers, shareholders and debt holders’ utility functions, which show different rewards, diversification levels, risk preferences and business expertise. Also, it seems likely that the severity of these effects varies across categories of intangible assets.
Keywords: Intangible assets; corporate financial; governance policies; agency theory. (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://ejms.iseg.ulisboa.pt/files/THE_IMPACT_OF_I ... ITERATURE_REVIEW.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pjm:journl:v:xiv:y:2010:i:1:p:87-107
Access Statistics for this article
Portuguese Journal of Management Studies is currently edited by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne
More articles in Portuguese Journal of Management Studies from ISEG, Universidade de Lisboa Contact information at EDIRC.
Bibliographic data for series maintained by Luís Mota de Castro, Tiago Cardão-Pito, Mark Crathorne ().