Document Type

Article

Publication Date

2025

DOI

10.1111/eufm.12547

Publication Title

European Financial Management

Pages

1-29

Abstract

This study introduces a new metric to evaluate a firm's intangible asset intensity, focusing on its ability to generate revenue from nonphysical assets. It finds a strong positive correlation between firm performance and both internally generated and externally acquired intangible assets. Firms with high intangible intensity outperform peers by 3% annually. The oversight of intangible assets is identified as a factor in value stocks' underperformance. Rigorous tests, including endogeneity checks, confirm these firms exhibit superior accounting quality, labour investment efficiency and acquisition returns. A framework highlights how managerial attributes enhance firm value through decision-making.

Rights

© 2025 The Authors.

This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License, which permits use, distribution, and reproduction in any medium, provided the original work is properly cited.

Comments

Data availability statement: Article states: "The data that support the findings of this study are available from the corresponding author upon reasonable request."

Original Publication Citation

Dong, F., & Doukas, J. (2025). The role of intangible assets in shaping firm value. European Financial Management. Advance online publication. https://doi.org/10.1111/eufm.12547

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