Intangible-Driven Value Creation: Supporting and Obstructing Factors

22 Pages Posted: 28 Dec 2013

See all articles by Elena Shakina

Elena Shakina

National Research University Higher School of Economics

Mariya Molodchik

National Research University Higher School of Economics, Perm Campus

Date Written: December 26, 2013

Abstract

This study investigates the factors that support or obstruct market value creation through intangible capital. We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyze relationship between intangible-driven outperforming of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro, meso and micro level. We suppose that the process of value creation is confined not only by companies’ performance. It is established in our study that investment attractiveness is affected by intangibles. Our empirical research is conducted on more than 900 companies from Europe and US during the period of 2005-2009. We found out in this study that a company’s experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries’ education level, which appears to be an obstructive condition for intangible-driven value creation. Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making.

Keywords: intangibles, economic value added, market value, empirical study

JEL Classification: G30, M21

Suggested Citation

Shakina, Elena and Molodchik, Mariya Anatolievna, Intangible-Driven Value Creation: Supporting and Obstructing Factors (December 26, 2013). Higher School of Economics Research Paper No. WP BRP 24/FE/2013, Available at SSRN: https://ssrn.com/abstract=2372066 or http://dx.doi.org/10.2139/ssrn.2372066

Elena Shakina

National Research University Higher School of Economics ( email )

Studencheskaya str., 38
Perm, Perm krai 614070
Russia

Mariya Anatolievna Molodchik (Contact Author)

National Research University Higher School of Economics, Perm Campus ( email )

Studencheskaya street, 38
Perm, Perm 614017
Russia

HOME PAGE: http://www.hse.ru

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