Intangible Investment and Market Valuation
This study derives performance and expenditure based estimates of intangible capital and measures the extent to which intangible capital is captured by the equity market measures of firm value. Intangible capital is evaluated using occupational information available in the Finnish linked employer employee data for the 1997 2011 period. The performance based organizational investment in value added is approximately 3 percent; RD both increase the market value of firms beyond the level that can be explained by standard economic analysis.