The Hidden Effect of Intangible Financial Information on the Market Value of Hospitality Firms in the United States

Keywords

tangible and intangible financial information, hospitality industry, market value

Abstract

Intangible assets may not be fully captured in the traditional financial statements. Therefore, this study investigated the extent to which tangible financial information explains the market value of hospitality firms, and then it examined the discrepancy between tangible information and intangible information on firm value. This study found that book value of current assets was a significant predictor of a firm's market value, but only 31.9% of the variability of firms' market performance could be explained by tangible financial information. This suggests that about 68% of the variability of a firm's market performance might be explained by unrecorded intangibles and the interconnectedness of intangibles.

Publication Date

11-30-2011

Original Citation

Lee, J., & Ghiselli, R. (2011) The hidden effect of intangible financial information on the market value of hospitality firms in the U.S., Journal of Foodservice Business Research, 14(4), 393-404.

Number of Pages

393-404

Document Type

Paper

Language

English

Source Title

Journal of Foodservice Business Research

Volume

14

Issue

4

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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