Chiu, Wan-Chien; Jagannathan, Ravi; Tseng, Kevin - National Bureau of Economic Research - 2023
We decompose the difference between a firm's market value and book value into two components: reproducible intangible … assets that can be created by competing firms through SG&A/R&D expenditures, and the residual denoted as franchise value … which includes the value of transient-rents from capacity-adjustment-costs (Tobin's Q), longer-lasting franchise rents, and …