Abstract
As part of an effort to examine the value of intangible assets in the firm, our study is the first to create IT-related intangible asset stocks from firm-level survey data. We also use data on ITrelated business practices in order to understand the distribution of IT-related intangibles, and we create asset stocks to value research and development (R&D) and brand. Using a panel of 130 firms over the period 2003-2006, we find that intangible assets are correlated with significantly higher market values beyond their cost-based measures. Moreover, we estimate that there is a 30- 55% premium in market value for the firms with the highest organizational IT capabilities (based on a measure of HR practices, management practices, internal IT use, external IT use, and Internet use) as compared to those with the lowest organizational IT capabilities.
Recommended Citation
Saunders, Adam, "VALUING IT-RELATED INTANGIBLE CAPITAL" (2010). ICIS 2010 Proceedings. 243.
https://aisel.aisnet.org/icis2010_submissions/243