Intangible Capital and Corporate Cash Dynamics: Theory and Evidence

To understand the economic value of computers, one must broaden the traditional definition of both the technology and its effects. Case studies and firm-level econometric evidence suggest that: 1) organizational “investments” have a large influence on the value of IT investments; and 2) the benefits of IT investment are often intangible and disproportionately difficult to measure. Our analysis suggests that the link between IT and increased productivity emerged well before the recent surge in the aggregate productivity statistics and that the current macroeconomic productivity revival may in part reflect the contributions of intangible capital accumulated in the past.

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A New Approach to the Valuation of Intangible Capital

Measuring Capital in the New Economy ◽

10.7208/chicago/9780226116174.003.0003 ◽

2013 ◽

pp. 47-72 ◽

Cited By ~ 10

Author(s):

Jason G. Cummins

Keyword(s):

Intangible Capital ◽

New Approach

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Le Capital Immatériel : Evaluation Et Importance Cas Des Entreprises Marocaines Cotées En Bourse

European Scientific Journal ESJ ◽

10.19044/esj.2016.v12n10p304 ◽

2016 ◽

Vol 12 (10) ◽

pp. 304

Author(s):

Omar Taouab ◽

Lotfi Benazzou ◽

Aziz Babounia

Keyword(s):

Intellectual Capital ◽

Stock Exchange ◽

Information Age ◽

Intangible Capital ◽

Approximate Approach ◽

Fixed Assets ◽

The Subject

Currently, we live in an economy that has changed considerably since the 1990s. This is the time where the economies have moved from the industrial to the information age. For about a decade, companies have switched to the immaterial economy in addition to the physical value (fixed assets: buildings, workshops, computers, vehicles, etc.) and the cash value (cash, receivables, etc.).There is a gaseous value, which is the intangible capital. This new notable concept is the subject of this research, which is to calculate the intangible capital of a sample of listed Moroccan companies, according to an approximate approach, based on publicly available data on Casablanca Stock Exchange website. The purpose of this research is to answer the following questions: What is intellectual capital? What are the components of intangible capital? And what is the weight of intangible capital in Moroccan companies?

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The Financing of Ideas and the Great Deviation

IMF Working Papers ◽

10.5089/9781484311134.001 ◽

2017 ◽

Vol 17 (176) ◽

Cited By ~ 2

Author(s):

Daniel Garcia-Macia

Keyword(s):

Great Recession ◽

Heterogeneous Firms ◽

Intangible Capital ◽

Model Matching ◽

Slow Recovery ◽

Firm Level ◽

The Great Recession ◽

Financing Costs ◽

Speed Up ◽

Intangible Investment

Why did the Great Recession lead to such a slow recovery? I build a model where heterogeneous firms invest in physical and intangible capital, and can default on their debt. In case of default, intangible assets are harder to seize by creditors. Hence, intangible capital faces higher financing costs. This differential is exacerbated in a financial crisis, when default is more likely and aggregate risk bears a higher premium. The resulting fall in intangible investment amplifies the crisis, and gradual intangible spillovers to other firms contribute to its persistence. Using panel data on Spanish manufacturing firms, I estimate the model matching firm-level moments regarding intangibles and financing. The model captures the extent and components of the Great Recession in Spanish manufacturing, whereas a standard model without endogenous intangible investment would miss more than half of the GDP fall. A policy of transfers conditional on firm age could speed up the recovery, as young firms tend to be more financially constrained, particularly regarding intangible investment. Conditioning transfers on firm size or subsidizing credit (as in current E.U. policy) appears to be less effective.

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