NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Baruch Lev

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

August 2005The Valuation of Organization Capital
with Suresh Radhakrishnan
in Measuring Capital in the New Economy, Carol Corrado, John Haltiwanger and Dan Sichel, editors
Remarks
with Robert E. Hall, Erik Brynjolfsson, Lorin Hitt
in Measuring Capital in the New Economy, Carol Corrado, John Haltiwanger and Dan Sichel, editors
March 2003The Measurement of Firm-Specific Organization Capital
with Suresh Radhakrishnan: w9581
We develop a firm-specific measure of organization capital and estimate it for a sample of approximately 250 companies. We test the validity of the organization capital measure within a widely used investment valuation model and show that our organization capital estimate contributes significantly to the explanation of market values of firms, beyond assets in place and expected abnormal earnings (growth potential). We then examine whether capital markets are efficient with respect to organization capital, namely whether stock prices fully reflect the value of this resource. We find that while investors recognize the importance of organization capital, they do not fully factor its value into equity prices. We ascribe this fault or market inefficiency to poor disclosure of information about ...

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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