Intangible capital, corporate valuation and asset pricing
Détails
Etat: Public
Version: Final published version
Licence: Non spécifiée
It was possible to publish this article open access thanks to a Swiss National Licence with the publisher.
ID Serval
serval:BIB_1E8453D055DF
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Intangible capital, corporate valuation and asset pricing
Périodique
Economic Theory
ISSN
0938-2259
1432-0479
1432-0479
Statut éditorial
Publié
Date de publication
2007
Peer-reviewed
Oui
Volume
32
Numéro
1
Pages
157-177
Langue
anglais
Résumé
Recent studies have found unmeasured intangible capital to be large and important. In this paper we observe that by nature intangible capital is also very different from physical capital. We find it plausible to argue that the accumulation process for intangible capital differs significantly from the process by which physical capital accumulates. We study the implications of this hypothesis for rational firm valuation and asset pricing using a two-sector general equilibrium model. Our main finding is that the properties of firm valuation and stock prices are very dependent on the assumed accumulation process for intangible capital. If one entertains the possibility that intangible investments translates into capital stochastically, we find that plausible levels of macroeconomic volatility are compatible with highly variable corporate valuations, P/E ratios and stock returns.
Mots-clé
Intangible capital, Corporate valuation, Stock return volatility
Web of science
Open Access
Oui
Création de la notice
16/07/2018 15:58
Dernière modification de la notice
14/02/2022 8:54