Persistent competitive pressure induced by globalization, deregulation and technological changes has forced the companies to rely on continuous innovations for survival and growth. Innovation, in turn, is primarily achieved by the investment of intangible assets. It is, therefore, hardly...

Estimates of intangible capital stock are of prime importance for accurate measurement of productivity growth. Aggregate intangible capital stock is usually estimated using the so-called Corrado-Hulten-Sichel (CHS) new growth accounting framework. Yet this framework has not received much...

I investigate whether firms subject to SFAS No. 86 Accounting for the Costs of Computer Software provide information regarding future benefits of these software development (SD) expenditures. Numerous comment letters from the 1985 Exposure Draft indicate analysts feel that given the leeway to...