Intangible Assets and Market Valuation: Rethinking Disclosure in the Digital Economy

Abstract

In today’s digital economy, the proportion of assets a company holds directly reflects its operating scale and future growth potential. Numerous investors in the market will assess a company’s prospects based on the share of assets that are reflected in its financial statements, thereby determining whether to engage in investment activities. Intangible assets, as one of the most significant components of an enterprise’s assets, undoubtedly constitute a key focus when analyzing a company. However, the requirements for recognizing and disclosing intangible assets under traditional financial reporting frameworks present certain limitations, which will result in a discrepancy between a company’s market valuation and its actual value. Market valuation, as the most tangible measure of a company's worth, directly influences its financing activities and shareholder equity. The discrepancy between market valuation and actual value poses incalculable consequences for a company's future development. Based on this, the present paper focuses on the causal mechanism linking intangible asset disclosure and market valuation, investigating the shortcomings and improvement pathways under current accounting measurement principles and disclosure models. This study first employs an integrated theoretical analysis—encompassing both international and domestic accounting standards, as well as domestic and international theoretical research on intangible assets and market valuation—subsequently draws on a practical corporate case study, and ultimately aims to provide theoretical support and practical guidance for the revision of accounting standards, the formulation of relevant regulatory policies, and investor decision-making.