Search results for: “tangible”
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Why Are Intangible Investments Different To Tangible Investments?
Haskel and Westlake’s main point in Capitalism without Capital is that the world is changing and that the predominant form of investment nowadays (investments in intangibles) is different from investment in tangible assets. Why are intangible investments different to tangible investments? The Four Ss of Intangibles The authors, in making the case for intangible investments…
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Some Notes On Intangible Value
The GIFT Report (Global Intangible Financial Tracker) 2016 is a really useful piece. A collaboration by Brand Finance (a brand valuation firm), CIMA (the Chartered Institute of Management Accountants), and the IPA (Institute of Practitioners in Advertising). It contains some notes on intangible value. It highlights major factors and trends in the reporting of this…
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Total Q, A New Improved Tobin’s Q? Not By Much
Total q is a new variant on Tobin’s q. Possibly my best-known academic paper is a piece with Moeen Butt that was published in Marketing Science. This paper criticized the use of Tobin’s q as a performance metric in marketing. I am not the only person who has concerns about the use of Tobin’s q…
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A Total Q Mystery: Understanding Academic Marketing
I was disappointed to read Du and Osmonbekov‘s 2020 paper in the International Journal of Research in Marketing, see here. The authors clearly don’t mind hard work and I’m sure they have useful empirical skills. Still they aren’t young researchers making errors or rushing a paper to the market. They can do better. It is…
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Another Total Q Mystery
I am fascinated by attempts to replace Tobin’s Q as a firm performance metric with Total Q. Both metrics are not fit for purpose. One of the most interesting things is just how terrible the arguments in favor of Total Q as a firm performance metric are. I recently highlighted problems in Du and Osmonbekov‘s “Direct effect of…
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Total Q Measures Investment Opportunities Not Firm Value
Papers in finance can sometimes get a hefty citation count boost when they get picked up in marketing. Peters and Taylor‘s 2017 paper on Total q is a nice paper. They make the very reasonable assertion that their Total q measures investment opportunities better than current Tobin’s q approximations. While I’m not a finance person…
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Measuring A Technological Revolution
Some have begun to make the argument that there is a technological revolution. A move towards intangible assets. How does one go about measuring a technological revolution? A Problem With Accounting Corrado and Hulten highlight a major problem in the way accounts are created. This applies to both corporate and national accounts. A basic idea…
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Public Policy And Intangibles
Haskel and Westlake in their excellent book “Capitalism without Capital” point out the problems that record keeping has with recording assets. (My last comment on this book I promise). There is a big problem in respect of public policy and intangibles. Reporting Challenges They note the asymmetry of the rules around intangible reporting. Namely that intangibles…
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What Does Marketing Do?
What does marketing do? Many people really have little idea. Establishing what marketers do can be an important first step to a meaningful discussion. People Don’t Necessarily Understand marketing Haskel and Westlake have a great new book — Capitalism without Capital. In this they highlight a major problem that they see. The problem they note is…
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Tangibilizing Sustainability’s Value For Stakeholders
A major challenge in sustainable business is that many of the good things we want simply can’t be seen. The electronics equipment you are considering may have be made by people being paid a decent wage, or it may not have been. You don’t really know the difference from just looking at the product. Gregory…
