Measuring the Invisible: Financial Approaches to Evaluating Intangible Capital in Enterprises

Abstract

Intangible capital, which includes elements such as human, structural, and relational capital, is a key factor in value creation for businesses in the modern economy. Unlike tangible assets, these intangible components are often difficult to quantify and assess accurately. This article takes a critical literature review approach, comparing traditional and modern financial methods for evaluating intangible capital. Through this analysis, we highlight the interdependent interactions between the components of intangible capital and offer theoretical perspectives on the limitations and advantages of each method. The findings reveal that modern approaches, although still in development, tend to better integrate the complexity and dynamics of intangible capital, thus providing a more holistic and accurate understanding of its value.

Keywords: intangible capital, intangible asset valuation, valuation methods, performance, innovation.

JEL Classification : G32, M41, O34, L25, D24 .

Paper type: Theoretical Research