Intangible assets and value creation: The influence of Research & Development on corporate value creation

Keywords: Intangible assets, Value creation, Research and Development, Company’s performance, Evaluation of firms


This paper provides a partial overview of the concept related to Intangible assets or intellectual capital and the concept of corporate value creation as well as a synthesis of the studies that have contributed to the discussion of the relationship between the two.

In the current context, the value of a company cannot be read through financial statements. Those reports are in trouble to give a value to the Research and Development, to the brand, to the human capital, to the reputation or to the set of the talents which are behind the real performance of a company. However, a correct method of a company’s evaluation requires a relevant communication on its intangible assets. Thus, intellectual capital represents an indicator of the reliability of the investment projects announced by the firm and hence, is one of the determinants of the success of an evaluation process since it provides an insight into the relevance of previous strategies, which are reflected in managerial skills and knowledge that the company has achieved regarding its business and its environment.

Moreover, the opportunity to create value from intangible assets requires the implementation of specific strategies and depends mainly on the company’s management skills. Investing in Research & Development, for example, needs huge budgets that only big companies can afford. Other firms may have recourse to some external institutions to bring knowledge and to expand the technological portfolio.

In reviewing the literature on Research and Development, we can notice that the studies cover a variety of aspects such as R&D expenditures, the market value of the company, the cost of debt or the risk premium of return.


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How to Cite
Anaya, F. E. (2021). Intangible assets and value creation: The influence of Research & Development on corporate value creation. International Journal of Accounting, Finance, Auditing, Management and Economics, 2(3), 322-338.