Intangible assets—things like brand reputation, proprietary knowledge, and organizational capabilities—have become more valuable than physical factories and equipment with many studies estimating that intangibles now account for roughly one third to one half of corporate capital. However, measuring these assets remains one of finance’s great challenges. Andrea Eisfeldt, Barney Hartman-Glaser, Edwa...
This research operates within a rapidly shifting economic landscape – one where traditional accounting practices struggle to adequately represent the value of immaterial assets, a shift accelerated by technological advancements. The authors’ use of large language models to decode corporate narratives is a significant move, effectively turning the voluminous, often opaque, disclosures of public companies into quantifiable metrics. The core innovation isn't just the scoring system, but the implic...