The Effect of Intangible Assets on Financial Performance, Financial Policies, and Market Value of Technology Firms: A Global Comparative Analysis
Abstract
Purpose- The purpose of this study is to examine the degree to which intangible assets affect financial performance and policy of the technological sector.
Design/methodology/approach- Structural equation modeling analysis was used to ascertain the relationship among intangible assets, firm performance, firm policy, and firm value in the year 2015 to 2018 of 80 companies according to the market capitalization of their respective countries in the technology sector globally. The measures used in this study profitability efficiency, capital structure, dividend policy and market value that is calculated through the proxies ROA, ROE, ROIC, ATO, Net Profit Margin, debt to equity ratio, dividend payout ratio, price-earnings ratio, price to sales and price to book value.
Finding- The results from Multi group Analysis (MGA) revealed that there are differences (p < .05) in the significance of the impact of Assets on the criterion variable between a few countries for instance Asset’s impact on ROIC is significantly different between Russia & China and USA.
Practical implications- Owners and managers of technological sector global companies must recognize the importance of both the physical capital and the intangible resources to the best interest of the companies
Originality/value– This is the first paper to examine the impact of intangible assets on firm performance, policies and value through cross country analysis in the technological sector.
Copyright (c) 2020 Asian Journal of Finance & Accounting
This work is licensed under a Creative Commons Attribution 4.0 International License.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in MTI journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
