Decomposing firm value
What are the economic determinants of a firm’s market value? We answer this question through the lens of a generalized neoclassical model of investment with quasi-fixed labor and three heterogeneous capital inputs. We estimate the structural model using firm-level data on US firms and find that, on...
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| Veröffentlicht in: | Journal of financial economics 2022-02, Vol.143 (2), p.619-639 |
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| container_end_page | 639 |
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| container_issue | 2 |
| container_start_page | 619 |
| container_title | Journal of financial economics |
| container_volume | 143 |
| creator | Belo, Frederico Gala, Vito D. Salomao, Juliana Vitorino, Maria Ana |
| description | What are the economic determinants of a firm’s market value? We answer this question through the lens of a generalized neoclassical model of investment with quasi-fixed labor and three heterogeneous capital inputs. We estimate the structural model using firm-level data on US firms and find that, on average and depending on the industry, installed labor force accounts for 14–21% of firms’ market value, physical capital accounts for 30–40%, knowledge capital accounts for 20–43%, and brand capital accounts for 6–25%. Our analysis provides direct empirical evidence for the importance of labor and intangible capital inputs for understanding firm value. |
| doi_str_mv | 10.1016/j.jfineco.2021.08.007 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0304-405X |
| ispartof | Journal of financial economics, 2022-02, Vol.143 (2), p.619-639 |
| issn | 0304-405X 1879-2774 |
| language | eng |
| recordid | cdi_proquest_journals_2630530075 |
| source | Elsevier ScienceDirect Journals |
| subjects | Accounts Capital Intangible assets Intangibles Investment Labor force Market value Neoclassical investment Structural estimation Valuation |
| title | Decomposing firm value |
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