Intangible Value Creation Through Teamwork

ABSTRACT Using a sample of US firms from 1993 to 2023, comprising 38,502 firm‐year observations, we find that collaboration culture positively correlates with intangible value creation. We identify corporate innovation and human capital as the mechanisms via which collaboration correlates with intangible value creation. Our results remain robust to endogeneity concerns using firm fixed effects, propensity score matching, and a difference‐in‐differences approach. Our results remain valid when using alternative measures of collaboration culture. The positive relation between collaboration culture and intangible capital is more prominent among firms that do not undertake M&A activities and face more intense product market competition.