Factors explaining the inefficient valuation of intangibles

Abstract

The inefficient valuation of the intangible determinants of the financial position of business companies may result in significant damages for both firms and their stakeholders. Based on the empirical literature in accounting and finance, this paper suggests possible reasons for the inefficient valuation of intangibles, provides explanations for the existence of biases in analysts’ earnings forecasts and proposes alternative ways for the improvement of the resource allocation mechanisms in the capital markets.

Citation

García‐Ayuso, M. (2003), "Factors explaining the inefficient valuation of intangibles", Accounting, Auditing & Accountability Journal, Vol. 16 No. 1, pp. 57-69. https://doi.org/10.1108/09513570310464282