An Empirical Study on the Effect of Intangible Assets on the Valuation of KOSDAQ IPO Firms
Asian Tax Journal Vol. 11 No. 4 (2010), pp. 153-173
Abstract
The purpose of this study is to examine the effect of intangible assets and revenue expenditures such as R&D expenses, advertising expenses on the valuation of IPO firms. We also examine the influence of human capital measured by wages, salaries, employee training and education expenditures, and welfare expenditures on the valuation of IPO firms. We first examine the effect of intangible and quasi－intangible assets on the offer price and market price in the first trading day. The empirical results show that capitalized R&D expenditures and advertising expenditures appear to be significantly related to the pricing of the offer price and market price. But other intangibles assets and revenue expenditures of R&D are not clearly related to the pricing of the offer price and market price. Expenditures related to human capital appear to be strongly related to the market price but not be related to the offer price.
Keywords
- Initial Public Offerings
- Valuation
- Intangible Assets
- Offer Price
- R&D
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