Intangible Capital and Firm Productivity

2017 ◽  
Vol 18 (2) ◽  
pp. 246-275
Author(s):  
Bishwanath Goldar ◽  
Yashobanta Parida
Keyword(s):  
Production Function ◽  
Capital Stock ◽  
Intangible Assets ◽  
Positive Impact ◽  
Rate Of Return ◽  
Intangible Capital ◽  
Firm Productivity

An estimate of intangible capital stock is made for a sample of about 3,200 Indian corporate firms for 2012–2013, based on investments made by the firms in various intangible assets during the previous 10 years. For manufacturing and services firms of the sample, three alternate specifications of a production function are estimated in which intangible capital is taken as an input. This analysis clearly reveals that intangible capital has a significant positive impact on productivity of manufacturing and services firms in India. The rate of return to intangible capital is found to be much higher than that to tangible capital.

scholarly journals Application of an intangible asset valuation model using panel data for listed enterprises in Vietnam

2020 ◽  
Vol 17 (1) ◽  
pp. 304-316
Author(s):  
Quan Minh Quoc Binh ◽  
Nguyen Minh Ha ◽  
Ngo Thi Huyen Trang
Keyword(s):  
Panel Data ◽  
Building Materials ◽  
Intangible Assets ◽  
Positive Impact ◽  
Professional Services ◽  
Intangible Asset ◽  
Company Performance ◽  
Asset Valuation ◽  
Valuation Model ◽  
Intangible Asset Valuation

Intangible assets play an important role in increasing the value of companies. The performance of companies increasingly depends on ideas, information, and professional services rather than tangible assets. The question of how to accurately measure intangible assets remains a challenge for many scientists. This study aims to measure intangible assets of 396 companies listed on Vietnam’s stock market between 2010 and 2014 using the panel data technique by Yamayuchi (2014). The estimation shows that intangible assets make up a large share of total assets of companies. In addition, construction, steel, building materials, mining, and food are sectors with high intangible assets in Vietnam. The study also finds a positive impact of intangible assets on improving company performance. The findings demonstrate the importance of investing in intangible assets, such as R&D, technology, advertising, and human resources, to increase the value of a company in the future.

The Difference of Capital Input and Productivity in Service Industries: Based on Four Stages Bootstrap-DEA Model

2018 ◽  
Vol 6 (4) ◽  
pp. 320-335 ◽  
Author(s):  
Wei Xi ◽  
Xiran Cheng
Keyword(s):  
Capital Stock ◽  
Service Industry ◽  
Positive Impact ◽  
Service Industries ◽  
Average Wage ◽  
Capital Input ◽  
Industrial Productivity ◽  
Dea Method ◽  
The Difference ◽  
Bootstrap Dea

Abstract Based on the concept of productive capital stock, this paper estimated capital input by three asset types of China’s 36 service industries in 2003–2015, and compared with the results of wealth capital stock. This study found that the wealth capital stock method underestimates the actual capital input in each sector in varying degrees, and it may interference the accuracy of productivity evaluation in sectors. According to the new estimation results of capital input, this paper further applied four stages bootstrap-DEA method to estimate industrial productivity, and calculated its confidence intervals. This study found that, the years of education and the average wage have a significant positive impact on the productivity of service industries; the productive services have a short board effect in the whole service industry.

The Cambridge–Cambridge controversy on the theory of capital: 50 years after

2020 ◽  
Vol 17 (2) ◽  
pp. 196-207
Author(s):  
Harald Hagemann
Keyword(s):  
General Equilibrium ◽  
Production Function ◽  
Rate Of Return ◽  
Value Systems ◽  
Equilibrium Models ◽  
Neoclassical Theory ◽  
Capital Theory ◽  
Clear Result ◽  
Theoretical Issues ◽  
Surrogate Production

The paper points out that capital theory has always been a hotly debated subject, partly because the theoretical issues involved are very complex, and partly because rival ideologies and value systems directly affect the issues discussed. The focus is on the history, the main protagonists, and the relevant problems examined and argued about during the two Cambridges controversy on the theory of capital which was at its peak 50 years ago. Whereas one clear result of these debates is that neither Samuelson's surrogate production function nor Solow's rate-of-return concept could resurrect aggregate neoclassical theory, many other questions, such as the treatment of capital in temporary or intertemporal general equilibrium models or the empirical relevance of the reswitching phenomenon, are still discussed controversially.

scholarly journals Worker Heterogeneity and the Popularity of the Minimum Wage Institution

2019 ◽  
Vol 11 (1) ◽  
pp. 1-39
Author(s):  
George Economides ◽  
Thomas Moutos
Keyword(s):  
Minimum Wage ◽  
Capital Stock ◽  
Demand Curve ◽  
Rate Of Return ◽  
Labour Demand ◽  
Long Run ◽  
Worker Heterogeneity ◽  
State Capital ◽  
Generous Welfare ◽  
Large Output

This paper analyzes long run outcomes resulting from adopting a binding minimum wage. The model distinguishes between workers of heterogeneous ability, and capitalists who do all the saving, and it entails – relative to the perfectly competitive benchmark - large output and employment losses (among the lowest-ability workers) from the imposition of moderately binding minimum wages. These effects arise not only because firms respond to the wage increase – relative to the static perfectly competitive benchmark – by moving upwards along a given labour demand curve, but also due to inward shifts of the labour demand curve as savers respond to decreases in the (net of taxes) rate of return on their savings by saving less, thus reducing the economy’s steady-state capital stock. Nevertheless, and despite the large, long-run, declines in aggregate output, consumption, and the capital stock implied by this model, MW legislation can be beneficial for large segments of employed workers, as long as they do not have to provide generous welfare support to the low-ability workers that the MW prevents them from finding employment.

Trade liberalization and its economic impact on developing and least developed countries

2014 ◽  
Vol 13 (3) ◽  
pp. 215-221 ◽  
Author(s):  
Shujaat Abbas
Keyword(s):  
Economic Growth ◽  
Trade Liberalization ◽  
Production Function ◽  
Capital Stock ◽  
Negative Impact ◽  
Sustainable Growth ◽  
Total Trade ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Significant Negative Impact

Purpose – This paper aims to investigate the impact of trade liberalization on economic growth of selected developing and least developed economies by augmenting standard production function. Design/methodology/approach – The panel fixed effect model is used to estimate impacts of macroeconomic variables on economic growth. Real GDP million US$ is taken as proxy for economic growth. The capital stock series for each cross-section is generated from gross fixed capital formation. The total trade to GDP is taken as proxy for trade liberalization. Findings – The result shows significant positive impact of selected macroeconomic variables on economic growth, except trade liberalization index. The one unit increase in trade liberalization deteriorates economic growth, of developing countries by −280.86 million US$ and least developing by −3555.09 million US$. Research limitations/implications – The significant negative impact indicates the relatively greater share of import than exports. The developing nations should develop production side and adopt export promotion policies besides managing imports for the achievement of sustainable growth. Originality/value – This study uses augmented production function and constructed capital stock for individual countries. The total trade to GDP is taken as index for trade liberalization and was found to have significant negative impact.

Intangible Assets

2011 ◽  
pp. 110-124 ◽  
Author(s):  
Feng Gu ◽  
Baruch Lev
Keyword(s):  
Information Technology ◽  
Intangible Assets ◽  
Balance Sheet ◽  
Intangible Capital ◽  
Economic Approach ◽  
Corporate Value ◽  
Future Performance

This chapter develops an economic approach to estimating the value of intangible assets that are not recorded on the firm’s balance sheet. The authors demonstrate that their approach provides economically meaningful and useful estimates for the value of intangible assets. Their results indicate that investments in R&D, advertising, brands, and information technology are important drivers of intangible capital, and in turn corporate value. Their approach is shown to be useful to investors seeking information on future performance of intangible-intensive firms. They document evidence that the intangibles-based measures can effectively distinguish between overvalued and undervalued stocks. They believe the intangibles measures described here can add an essential, and hitherto missing, valuation tool for managers and investors concerned with intangible assets.

scholarly journals Human Capital and Economic Growth in OECD Countries

2006 ◽  
Vol 226 (6) ◽  
Author(s):  
Torge Middendorf
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Student Performance ◽  
Capital Stock ◽  
International Student ◽  
Positive Impact ◽  
Large Country ◽  
Panel Data Estimation ◽  
The Impact ◽  
Instrumental Variables Approach

SummaryRecent studies on international student performance renewed the interest in the contribution of human capital to economic growth. So far the exploration of large country comparisons delivered rather mixed results. Concentrating on OECD member countries, this paper uses panel data estimation techniques to refine this analysis. Furthermore, as theory differs about the right measure of human capital, the impact of the human capital stock as well as its rate of accumulation on economic growth is analyzed. Yet estimation results reveal only a positive impact of the human capital stock on economic growth suggesting that an increase in average schooling years by one year yields a rise in the GDP growth rate of about 0.5 percentage points. However, when taking possible endogeneity into account in an instrumental variables approach, these conclusions on the impact of the level of human capital on economic growth is demonstrated to be rather fragile.

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