Abstract
Intangible assets may not be fully captured in the traditional financial statements. Therefore, this study investigated the extent to which tangible financial information explains the market value of hospitality firms, and then it examined the discrepancy between tangible information and intangible information on firm value. This study found that book value of current assets was a significant predictor of a firm's market value, but only 31.9% of the variability of firms' market performance could be explained by tangible financial information. This suggests that about 68% of the variability of a firm's market performance might be explained by unrecorded intangibles and the interconnectedness of intangibles.
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