Financial and intangible factors explaining the market value of firms: Evidence from the Romanian capital market

Type of the article: Research Article Understanding the impact of traditional financial factors and intangible assets on the value of listed companies is increasingly important amid rapid changes driven by the recent pandemic, energy, and geopolitical crises, alongside emerging economies’ shift toward knowledge-based models. This study aims to assess how traditional financial indicators and the intensity of intangible assets influence the market value of firms listed on the Bucharest Stock Exchange (BVB), using Tobin’s Q as the valuation measure. Out of an initial population of 84 companies, 56 were selected based on data completeness and consistency, covering the period 2019–2023, a timeframe marked by significant economic shocks. A multiple linear regression approach was employed, with Tobin’s Q as the dependent variable and firm size, intangible assets, leverage, liquidity, and profitability as predictors. Data exhibit significant dispersion and asymmetry, particularly in profitability and liquidity, indicating varied shock absorption capacities across firms. The regression model explains nearly 60% of the variation in firm value and meets all diagnostic criteria. Intangible assets emerged as the most influential positive factor, followed by firm size, while leverage negatively affects firm value. Liquidity and profitability showed no statistically significant effect when controlling for other variables. These results suggest that Romanian investors place growing emphasis on knowledge-based resources and firm scale, while penalizing high leverage. The study enriches existing literature and offers practical guidance for managers to prioritize investments in intangible capital over mere expansion of tangible assets.