Central European Business Review 2016, 5(4):23-33 | DOI: 10.18267/j.cebr.164

Management under Limited Information - The Measurement of Off-Balance Sheet Assets at Hungarian firms

Péter Juhász
Péter Juhász, PhD, CFA, Associate Professor, Department of Finance, Faculty of Business Administration, Corvinus University of Budapest, Fővám tér 8, 1093 Budapest, Hungary, peter.juhasz@uni-corvinus.hu

Relying on three questionnaire-based surveys from 2004, 2009 and 2013, each covering around 300 top financial managers of different Hungarian manufacturing and service companies, this article analyzes how the perception and measurement of intellectual capital (IC) elements has changed. Instead of focusing on stock exchange prices or case studies of individual firms, this research is unique for using a database on the opinion of top managers over a decade. After the managers, IC has slightly gained importance giving 48-51 percent of the firm value during the years analyzed, still, most companies give little attention to measuring these items correctly. This is dangerous, as by just focusing on traditional accounting measures or relying on outdated methods, top managers are less likely to take shareholder value maximizing decisions. Encouragingly, those who measure do it better: book value has lost popularity while more appropriate market value based estimates have gained importance.

Keywords: valuation; invested capital; intellectual capital
JEL classification: G32, M41

Received: October 1, 2016; Revised: December 9, 2016; Published: December 31, 2016  Show citation

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Juhász, P. (2016). Management under Limited Information - The Measurement of Off-Balance Sheet Assets at Hungarian firms. Central European Business Review, 5(4), 23-33. doi: 10.18267/j.cebr.164
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