Banks Struggle to Appraise Knowledge Companies Due to Intangible Assets
Knowledge companies, which rely on intellectual assets rather than physical ones, pose challenges for traditional credit appraisal methods. This study aims to understand how banks evaluate these companies based on their intellectual capital. The researchers used theoretical studies and interviews with multiple companies to explore this issue. The findings suggest that banks still heavily focus on tangible assets when assessing companies, despite the growing importance of intellectual capital in knowledge companies.