Value-relevance of expensed and capitalized intangibles - a French survey

Anne Jeny

No DR 03022, ESSEC Working Papers from ESSEC Research Center, ESSEC Business School

Abstract: Significant difference exists between the market value and book value of firms. It could be attributed to the fact that intangible assets are not reflected in the financial statements. Our resuls indicate a statistical association between the "capitalized goodwill" and the market-to-book ratio, but do not indicate any statistical link with the "expensed intangible-intensity" nor the "capitalized intangible-intensity". These results support and contradict, for a part, the explanation on the loss of value relevance of financioal information, which could be due to the non-recognized intangibles in financial statements. However, the differing French and American accounting treatments of intangible expenditures may explain why these expenses are not taken into account by french capital markets when estimating the value of companies.

Keywords: Intangible intensity; Market-to-Book ratio; Value-relevance; Goodwill; Capital markets; Ohlson model (search for similar items in EconPapers)
JEL-codes: G12 M41 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2003-07
New Economics Papers: this item is included in nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.essec.fr/faculty/showDeclFileRes.do?declId=641&key=__workpaper__ (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.essec.fr/faculty/showDeclFileRes.do?declId=641&key=__workpaper__ [301 Moved Permanently]--> https://www.essec.edu/fr/faculty/showDeclFileRes.do?declId=641&key=__workpaper__)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:essewp:dr-03022

Access Statistics for this paper

More papers in ESSEC Working Papers from ESSEC Research Center, ESSEC Business School ESSEC Research Center, BP 105, 95021 Cergy, France. Contact information at EDIRC.
Bibliographic data for series maintained by Sophie Magnanou ().