The Relation of Capitalized or Expensed of Intangible Expenditures to Firm Value

Abstract

Some expenditures that have an impact on the expectation of future benefits are often treated differently because the point of view is the possibility of uncertain future benefits. If it is uncertain will be expensed, while what is likely to come from the acquisition of external parties is capitalized as an asset. This difference treat-ment inspired the research to see its impact on corporate value in investor point of view. Testing this research with SPSS version 20 is based on timeseries data on LQ45 companies listed on the IDX in 2013-2017. Refer-ring to signaling theory, the results of this study find there is a relation of negative and non-significant intangible assets to firm value, there is a relation of positive and significant research and development expenses on firm value, there is a relation of negative and insignificant employee training expenses to firm value, and there is a relation of positive and not significant advertising expenses to firm value.