The Value-Relevance of Capitalized Intangible Assets by Companies Listed on the Egyptian Stock Exchange

This study tests the value relevance of capitalized intangible assets (excluding Goodwill) of all nonfinancial listed companies on the EGX 100 of the Egyptian Stock Exchange. Using longitudinal study for 357 observations/firm/quarter, along four years (2013  2016), the study investigates whether and to what extent reported intangible assets under EAS 23 associated with stock prices. Applying a modified Ohlson's (1995) valuation model, evidences document that capitalized intangible assets are positively and significantly associated with stock prices for all observations, for each year separately, and only for telecommunication sector, and construction and material sector.
Furthermore, results indicate that earnings are related positively and significantly to stock prices, for all observations, for each year separately except 2013, and for all selected sectors except real estate, and construction and materials sectors. In addition, results show that bookvalue of equity has a positive and significant impact on stock prices for all observations, for each individual year except 2016, and for all selected sectors except telecommunication sector.
These findings suggest that intangible assets provide relevant information to investors in assessing market value of companies listed on the Egyptian Stock Exchange. This study contributes to empirical findings concerning on the valuation usefulness of intangible assets