Leanne C. McGrath

The contribution of intangible assets and expenditures to shareholder value

The present study investigates the role of intangible assets and expenditures in the search for shareholder value. Recognizing the limitation of traditional financial measures of performance, this study assesses the impact of intangible assets and expenditures on a direct measure of corporate shareholder accountability, market‐adjusted holding period returns. Utilizing a sample of 1,657 actively traded manufacturing firms, the results indicate that advertising, goodwill, and research and development do not have significant positive impact on shareholder value, as measured by holding period returns. Instead, only intangible assets other than goodwill, which include the value of patents, copyrights, licenses, and trademarks, have a positive impact on shareholder value.

Beware the Internet panacea: how tried and true strategy got sidelined

When managed poorly, e‐business initiatives may actually transform once promising opportunities into dangerous threats. In this article, the authors outline the environmental threats posed by the Internet and e‐business practices and present a series of propositions on the relationship between managerial perceptions of e‐business’s impact on industry structure and the prevalence of a formal e‐business strategy.

RFID–Tracks It, Tracks You

ABSTRACT In an effort to improve business efficiencies and the bottom line, many industries are fast adopting Radio Frequency Identification (RFID) technology. Tagging and tracking of items from entry into the supply chain through consumer purchase has already begun. The U.S. Department of Defense and Wal-Mart are two major organizations spearheading the implementation of RFID. This paper provides insight and understanding concerning RFID technology, its benefits, obstacles to implementation, and its applications.

The E-Business Opportunity: A Key Role for Business Educators.

Abstract In this article, the authors provide a comprehensive, practical guide to facilitate the understanding of the issues faced by a business endeavoring to expand into the e-business environment. This presentation should help business educators understand some of the quintessential questions and concerns that a typical business must answer to pursue business on the Web.

The impact of advertising, goodwill, and other intangibles in the retail foodservice industry: Do intangible investments bite into investor returns?

ABSTRACT Utilizing a sample of U.S. publicly traded foodservice retailers, this study examines the impact of advertising, goodwill, and intangible assets on investor holding period returns. The results show that neither advertising nor intangible assets have a positive and significant impact on holding period returns. Goodwill, however, does have a positive and significant impact on holding period returns. Foodservice retailers may therefore want to question the effectiveness of growth strategies based on a firm’s own investments in either advertising or intangible assets. Instead, building a foodservice retailing business through mergers and acquisitions may prove a better use of company resources.