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Value Conversion
Value conversion is the act of converting one type of value or financial instrument into another type of negotiable value. In the securities profession the definition of conversion value is very narrowly defined as the positive difference between the market price of a convertible security and the price at which it is convertible. The larger topic of :Value conversion" is relevant to the managing of intangible assets or intellectual capital. It refers to the act of transforming financial to non-financial value or an intangible asset into a financial asset. Intangible asset management has largely focused on valuation of intangible assets like trying to assign a financial value to an asset such as reputation. The theme of value conversion also runs through social exchange theory Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Intangible Asset
An intangible asset is an asset that lacks physical substance. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names, as well as software. This is in contrast to physical assets (machinery, buildings, etc.) and financial assets (government securities, etc.). An intangible asset is usually very difficult to valuate. They suffer from typical market failures of non-rivalry and non-excludability.Webster, Elisabeth; Jensen, Paul H. (2006). ''Investment in Intangible Capital: An Enterprise Perspective.'' The Economic Record, Vol. 82, No. 256, March, 82-96. Today, a large part of the corporate economy ( NPV) consists of intangible assets. Definition Intangible assets may be one possible contributor to the disparity between "company value as per their accounting records", as well as "company value as per their market capitalization". Considering this argument, it is important to understand what an intangible asset truly is in the eyes of an accountant. A num ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Intellectual Capital
Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner (organization), covering the competencies of its people ( human capital), the value relating to its relationships (relational capital), and everything that is left when the employees go home (structural capital), of which intellectual property (IP) is but one component. It is the sum of everything everybody in a company knows that gives it a competitive edge. The term is used in academia in an attempt to account for the value of intangible assets not listed explicitly on a company's balance sheets. On a national level, intellectual capital refers to national intangible capital (NIC). A second meaning that is used in academia and was adopted in large corporations is focused on the recycling of knowledge via knowledge management and intellectual capital management (ICM). Creating, shaping and updating the stock of intellectua ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Exchange Theory
Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relationships—the cost-benefit analysis occurs when each party has goods that the other parties value. Social exchange theory suggests that these calculations occur in romantic relationships, friendships, professional relationships, and ephemeral relationships as simple as exchanging words with a customer at the cash register. Social exchange theory says that if the costs of the relationship are higher than the rewards, such as if a lot of effort or money were put into a relationship and not reciprocated, then the relationship may be terminated or abandoned. The most comprehensive social exchange theories are those of the American social psychologists John Thibaut, John W. Thibaut (1917–1986) and Harold Kelley, Harold H. Kelley (1921–200 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Exchange Value
In political economy and especially Marxian economics, exchange value (German: ''Tauschwert'') refers to one of the four major attributes of a commodity, i.e., an item or service produced for, and sold on the market, the other three attributes being use value, economic value, and price. Thus, a commodity has: * a value, represented by the socially necessary labour time to produce it (Note: the first link is to a non-Marxian definition of value); * a use value (or utility); * an exchange value, which is the proportion at which a commodity can be exchanged for other commodities; * a price (an actual selling price or an imputed ideal price). These four concepts have a very long history in human thought, from Aristotle to David Ricardo, and became ever more clearly distinguished as the development of commercial trade progressed, but have largely disappeared as four distinct concepts in modern economics. This entry focuses on Marx's summation of the results of economic thought about ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |