Relevance of intangible in the evaluation of firms: case of the French market
by Wassim Jamoussi, Mohamed Aymen Baklouti, Habib Affes
International Journal of Managerial and Financial Accounting (IJMFA), Vol. 1, No. 1, 2008

Abstract: This research aims at explaining the accounting evaluation which is unable to provide the firm's fair value due to intangibles. It consists of examining the relevance of traditional accounting information and that of intangibles in the firm's evaluation. To reach to this goal, an empirical study has been carried out on a sample of 391 firms traded on the Paris stock exchange from 2001 to 2004 to explain the effects of intangibles on the firm's value. The results show a significant decrease in the relevance of the traditional accounting information, based on earning per share, in the firm's evaluation. However, the intangibles enhance the value of firms enjoying high growth rates. Finally, the results confirm the importance of information pertaining to earning per share and intangibles to the investors' decisions.

Online publication date: Sat, 27-Sep-2008

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