The impact of intangible assets on market valuation: evidence from EURO STOXX 50 companies

Abstract

The impact of a company's intangible assets on its market value has been a topic of great interest. Many studies have focused on various factors, such as industry, size, age, indebtedness, and profitability of companies, which influence decisions regarding the disclosure of information about intangible assets. This study examines the role of intangible assets in the valuation of a company's market value and takes into account other firm-specific characteristics. Our analysis was conducted on a sample of 50 publicly traded companies that are part of the EURO STOXX 50 index and come from eight countries in the eurozone: Belgium, Finland, France, the Netherlands, Ireland, Germany, Spain, and Italy. The study covered a five-year period from 2018 to 2022.The results of our study indicate that intangible assets have a significant impact on a company's market value. In conclusion, our study highlights the growing importance of intangible assets in today's economy and their significant influence on a company's market value. Investors can benefit from a deeper understanding of these factors, aiding them in investment decisions. For companies, the strategic management of intellectual assets is essential for long-term success. As the importance of intangible assets continues to rise, further research in this area is necessary to gain deeper insights into their impact on the business world.