2003 Volume 11 Issue 2 Pages 3-17
This paper argues that how firms convert their organization renewing combined with intellectual assets into their firm value. Intellectual assets are defined as intangible elements that are generated by firms’ value creating activities and are expected to generate future cash flow or lower cost of capital. Many firms are renewing organizations by building or utilizing intellectual assets, such as, customer assets, business process assets, value-added premium divisions, etc. On the other hand, it turned out that the market community including fund managers and buy-side analysts also used intellectual assets as non-financial information when they amend their assessment of future cash flow or cost of capital of firms. The issues to be solved are, how firms convert their organization renewal efforts into the market value by investor relations activities including the voluntary disclosures and those prescribed by rules.
