The Impact of Intangible Assets on Earnings and Market Value: An Accounting-Based Approach for the Entertainment Industry

摘要

What is the impact of intangible assets for market value? How can market value and intangibles be measured? What is the difference between abnormal earnings and intangible assessed abnormal earnings? What is the marginal contribution of intangible assessed abnormal earnings on a firm's market value? We use the residual income model to explain earnings and market value of entertainment firms. We incorporate intangible assets.as an additional explanatory variable. We use a stochastic process model for earnings and a two-stage estimation model for market value.