Relationship between intangible assets and firm value: a study of selected Indian companies Dr. Pandya Hemal*, Ms. Jain Ankita** *Associate Professor, S.D. School of Commerce, Gujarat University, Ahmedabad-380015, Gujarat, India **Associate Professor, Knowledge Academy Fountainhead, Ahmedabad-380015, Gujarat, India Online published on 28 January, 2015. Abstract Intangible Assets of a firm is its possession of knowledge, applied experience, organizational technology, customer relationships and professional skills that provide it with a competitive edge in the market. At the beginning of the 21st century, the role of intangibles as value and growth creators is accepted among economists, investors and managers. Furthermore, there is general agreement that traditional (accounting-based) information systems are not able to provide adequate information about corporate intangible assets and their economic impact. As a consequence, intangible-intensive enterprises are confronted with excessive cost of capital, hindering their investment and growth. In addition, with the lack of information about the largest part of corporate assets, the risk managerial decision making increases. Because corporate outsiders have even less access to such information, the resulting information imbalance can lead to excessive trading gains to corporate insiders, destroying investors’ confidence. This creates a need for examining how the intangible assets affect the firm value in Indian companies. Hence, an attempt is made to examine the relationship between intangible assets and firm value for selected Indian companies. Top Keywords Intangible Assets, Firm Value, TOBIN's Q, Correlation Analysis, Multiple Regression Analysis. Top |