The relation between value changes in both the intangible assets and tangible assets with stock price and future cash flows
topic is about “the relation between value changes in both the intangible assets and tangible
assets with stock price and future cash flows (operating performance)”. I need you to write the
Literature review chapter which should be 52 pages but now I need you to write 15 pages about the
previous studies .I will write below a brief about my topic .
The fundamental objective of this study is to assess the relative importance of tangible versus
intangible assets to the valuation of firms.To achieve this aim, I will look at changes in the value of
assets and using the notion in the conceptual framework that an asset conveys future benefits to the
entity and I will assess which asset type is more associated with future benefits.
What I’m trying to get is which type of asset (as valued by accountants) conveys more information
on the value of the firm.
the following research question addressed in this study asks whether
1. Do changes in the value of tangible and intangible assets affect the value of a organisations’ future
cashflows from operations?
2. Does a change in the value of tangible and intangible assets affect organisations’ future operating
income?
3. Is there an effect on organisations’ abnormal return due to changes in the value of intangible and
tangible assets?
About my data : The data are taken from the UK Worldscope Datastream database and include all
firms listed in the London Stock Exchange (LSE) to identify firms that invested in tangible and
intangible assets since 2005, and includes all available data up to the end of 2015.
About research method that I used:
• There are two research methods used in this research
o Direct method – associate changes in asset values (tangible and intangible) with change in future
operating cash flows.
o Then we use an indirect method – we associate changes in asset values in the balance sheet with
the abnormal returns of the firm. The ARs indicate unusual changes to MV which the discounted
value of cash flows so this is an indirect method.
• In order to examine the hypotheses we will apply OLS regression model to estimate the relationship
between the dependent and independent variables.
I need you to write the Literature review using heading and subheading.
I want the level of language to be understandable and clear and for student (nonnative speaker).
Please when you complete the Literature review I want to upload all the reference that you use in the
Literature review as my supervisor need to see them and can you determine the page that you get
each information from because he need to see that.
