Value conversion is the act of converting one type of value or financial instrument into another type of negotiable value. In the securities profession the definition of conversion value is very narrowly defined as the positive difference between the market price of a convertible security and the price at which it is convertible. The larger topic of :Value conversion" is relevant to the managing of

intangible asset An intangible asset is an asset that lacks physical substance. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names, as well as software. This is in contrast to physical assets (machinery, buildings, etc.) and finan ...

s or

intellectual capital Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner (organization), covering the competencies of its people ( human capital), the value rela ...

. It refers to the act of transforming financial to non-financial value or an intangible asset into a financial asset. Intangible asset management has largely focused on valuation of intangible assets like trying to assign a financial value to an asset such as reputation. The theme of value conversion also runs through

social exchange theory Social exchange theory is a sociological and psychological theory that studies the social behavior in the interaction of two parties that implement a cost-benefit analysis to determine risks and benefits. The theory also involves economic relation ...

and more classical views of exchange value.

References

* Allee, Verna. "Value Network Analysis and Value Conversion of Tangible and Intangible Assets." Journal of Intellectual Capital. Publisher: Emerald Insights, Year: 2008, Volume: 9, Issue: 1, Page: 5 - 24, Digital Object Identifier, {{Econ-stub Capital (economics)