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(Answer: Banks perform less well than companies with tangible assets, like automakers and airlines).
The reasons range from the rarity of the stones, especially the colored varieties, to the desire of wealthy investors to diversify their portfolios with tangible assets as a hedge against volatile equity markets.
Intangible factors have always been entwined with tangible assets.
Everyone who owns a home, a stock, has a 401k, or a business with tangible assets will see their net worth level out below what it was before this started.
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The group's modishness as an unproven "virtual" company with few tangible assets made it all the more vulnerable to a backlash when investors became disappointed.
We live in an increasingly culture-based economy, and the value of art is in synch with other tangible assets now, like real estate.
In its most recent, frenzied incarnation, dot-com entrepreneurs have exchanged stock in companies with few tangible assets and even fewer profits for control of established, profitable companies.
But there is "big potential," he says, pointing out that licensing patented technology generates $100 billion a year and involves thousands of companies.Raising money this way can make sense not only for clever private-equity firms, but also for companies with low (or no) credit ratings that cannot easily tap the capital markets or with few tangible assets as collateral for bank loans.
It also highlights tangibility of assets influences a firm's credit status according to theoretical expectations: firms with more tangible assets are less likely to be financially constrained.
Additionally, we reveal significant temporal differences at the 5% level for tangible assets with a coefficient of −0.0679 and R&D with a coefficient of −0.0112.
Having virtually no tangible assets with which to start, she worked tirelessly to build a schoolhouse, solicit help and contributions, and enlist the goodwill of both the African American and white communities.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com