Unveiling Intangibles
81 Pages Posted: 10 Jan 2023 Last revised: 14 Apr 2023
Date Written: Jan 19, 2022
Abstract
Intangible assets are supposedly more important over time. It is difficult to estimate the market values of intangible assets. I use acquisition accounting to measure the market value of intangibles over time. I find that, contrary to popular belief, the intangible asset intensity has been stable in the past two decades. But there is a significant rise in customer-related intangibles. Also, there is some evidence of an increase in technology-related intangibles and intangibles under USPTO protection. Previous estimates of intangibles, using the perpetual inventory method on R&D expenses and SG&A expenses, appear to underestimate the intangible assets firms have.
Keywords: corporate finance, intangibles
JEL Classification: G32, G34
Suggested Citation: Suggested Citation