Measuring Intangible Capital with Market Prices

Michael Ewens, Ryan Peters and Sean Wang

No kvp2f, SocArXiv from Center for Open Science

Abstract: Existing standards prohibit disclosures of internally created intangible capital to firm balance sheets, resulting in a downward bias of reported assets. To characterize off-balance sheet intangible assets, we use transaction prices to estimate this missing intangible capital. On average, our new measure of intangible capital is 10\% smaller than prior estimates, while varying more by industry. These estimates better explain market values, increase HML portfolio returns, act as a better proxy for human capital and brand rankings, and exhibit a strong association with patent values.

Date: 2019-12-24
New Economics Papers: this item is included in nep-acc
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Measuring Intangible Capital with Market Prices (2025)
Working Paper: Measuring Intangible Capital with Market Prices (2019)
Working Paper: Measuring Intangible Capital with Market Prices (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:kvp2f

DOI: 10.31219/osf.io/kvp2f

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