TY - GEN
T1 - Intangible assets and cost of capital
T2 - PICMET '07 - Portland International Center for Management of Engineering and Technology - Management of Converging Technologies
AU - Tokmakcioglu, Kaya
AU - Tas, Oktay
AU - Gozlu, Sitki
PY - 2007
Y1 - 2007
N2 - Intangible assets, which are not physical in nature, play a very important role in today's firms. However, current financial statements provide very little information about these assets. Thus, managers are constrained to recognize and report them that lead to flawed information about a firm's cost of capital. This is the opportunity cost of an investment; that is the rate of return, which a company would otherwise be able to earn at the same risk level as the investment that has been selected. This paper examines the linkage between intangible assets and the cost of capital of a technology-utilizing firm. First, the basic concepts about intangible assets are presented. Then, the relationship between intangible assets and cost of capital are explained. Finally, an application in a technology-utilizing firm carried out, the results are evaluated, and future recommendations are proposed.
AB - Intangible assets, which are not physical in nature, play a very important role in today's firms. However, current financial statements provide very little information about these assets. Thus, managers are constrained to recognize and report them that lead to flawed information about a firm's cost of capital. This is the opportunity cost of an investment; that is the rate of return, which a company would otherwise be able to earn at the same risk level as the investment that has been selected. This paper examines the linkage between intangible assets and the cost of capital of a technology-utilizing firm. First, the basic concepts about intangible assets are presented. Then, the relationship between intangible assets and cost of capital are explained. Finally, an application in a technology-utilizing firm carried out, the results are evaluated, and future recommendations are proposed.
UR - http://www.scopus.com/inward/record.url?scp=47849114830&partnerID=8YFLogxK
U2 - 10.1109/PICMET.2007.4349317
DO - 10.1109/PICMET.2007.4349317
M3 - Conference contribution
AN - SCOPUS:47849114830
SN - 1890843164
SN - 9781890843168
T3 - Portland International Conference on Management of Engineering and Technology
SP - 45
EP - 51
BT - PICMET '07 - Portland International Center for Management of Engineering and Technology - Proceedings Management of Converging Technologies
Y2 - 5 August 2007 through 9 August 2007
ER -