Intangible Assets Research Articles

Effect Of Financial Distress On Tax Aggressiveness With Company Reputation As A Moderating Variable

One of the obstacles faced in collecting tax revenues is the practice of tax aggressiveness by the company. In conditions of financial constraints, the strategy of saving cash for taxes is the manager's main choice to maintain company cash because it does not have a bad impact on company operations. The company's reputation is an intangible asset that is seen as important to improve the company's performance so as to encourage business sustainability and the quality of the company's future. The purpose of this study was to examine the effect of financial distress on tax aggressiveness with the company's reputation as moderating. The method used is quantitative with the object of manufacturing companies listed on the Indonesia Stock Exchange (IDX). The results of the study indicate that financial distress has a positive effect on tax aggressiveness. The company's reputation is not able to weaken the positive influence of financial distress on tax aggressiveness.

Exploring the impact of establishment mode on intangible strategic asset creation in Chinese MNEs: springboard cross-border strategic asset-seeking M&As versus greenfield R&D-related FDI projects

Exploring the impact of establishment mode on intangible strategic asset creation in Chinese MNEs: springboard cross-border strategic asset-seeking M&As versus greenfield R&D-related FDI projects

Intangible assets, corporate tax credits and pharmaceutical establishments

Starting in the 1970s, the US government offered tax credits to US corporations doing business in Puerto Rico under Internal Revenue Code (IRC) Section 936. Firms in the pharmaceutical industry accounted for 50% of tax credits and 20% of employment. The tax credit program was eliminated in 2006, creating a natural experiment on the impact of eliminating corporate tax credits on establishments with high levels of intangible assets such as pharmaceuticals and medical devices. We use panel data on establishments 1990–2017 and a difference in difference methodology to measure the impact of the elimination of the tax credit program. Probability of survival of all manufacturing establishments declined from 90% three years before the elimination of IRC Section 936 to close to 50% three years after. Survival rates of all manufacturing establishments declined during the phaseout and elimination of the tax credit program. Pharmaceutical and medical devices establishments experienced an additional 3.5 to 6.2% decline. Approximately two thirds of the 33% decline in pharmaceutical and medical devices establishments in Puerto Rico can be attributed to the elimination of the tax credit program.

The Productivity Slowdown in Advanced Economies: Common Shocks or Common Trends?

This paper reviews advanced‐economy productivity developments in recent decades. We focus primarily on the facts about, and explanations for, the mid‐2000s labor‐productivity slowdown in large European countries and the United States. Slower total factor productivity (TFP) growth was the proximate cause of the slowdown. This conclusion is robust to measurement challenges including the role of intangible assets, rankings of productivity levels, and data revisions. We contrast two main narratives for the stagnating TFP frontier: The shock of the Global Financial Crisis; and a common slowdown in TFP trends. Distinguishing these two empirically is hard, but the pre‐recession timing of the U.S. slowdown suggests an important role for the common‐trend explanation. We also discuss the unusual pattern of labor productivity growth since the start of the Covid‐19 pandemic. Although it is early, there is little evidence so far that the large pandemic shock has changed the slow pre‐pandemic trajectory of labor‐productivity growth.

VALORIZAÇÃO DE ACTIVOS INTANGÍVEIS AMBIENTAIS: UMA ANÁLISE BIBLIOMÉTRICA E SISTEMÁTICA

Objective: This paper presents a systematic bibliometric analysis of the literature on intangible valuation, especially environmental intangibles, to analyze the relevance of the subject, the state of scientific knowledge, and research opportunities. Theoretical Framework: Intangible assets are relevant for companies because they can contribute to higher company valuation. Some research studies have successfully classified the different types of intangible assets and developed models to value companies that include them. However, diverse results have not allowed reaching a consensus on their use in company valuation. Method: The Knowledge Development Process-Constructivist (ProKnow-C) methodology was used; articles on intangible assets were analyzed with the VOSViewer® software, while an analysis of the articles for environmental assets was performed with the lens.org platform. Results and Discussion: It was determined that most intangible asset valuation models are empirical and use regressions to perform the valuation. Intellectual capital is one of the intangible assets that has been proposed by more models. Research Implications: Some opportunities for future research on this topic are identified; these are adjusted to models that consider the main environmental assets and are easily applied by companies.

US Court Cases and Intangible Assets Valuations

US Court Cases and Intangible Assets Valuations

A "Big5" európai labdarúgó bajnokságok játékos-transzfer tevékenységének összehasonlító elemzése

Transfer news and events generate as much, if not more, interest than the final matches of the most prestigious cup competitions. It is not uncommon for a player's playing rights (which clubs recognise as intangible assets) to change hands for sums in excess of €10 million or even €100 million, with the outstanding revenues of the most prestigious Big 5 leagues contributing greatly to the reality of these transactions. The aim of this study is to provide a comparative analysis of player transfer activity in the Big 5 leagues, focusing on the correlations and relationships between league revenues, transfer spending and revenues, using financial and player transfer data from 2017 and onwards. In terms of the extent of transactions, it can be concluded that player transfers are crucial for the financial management, profitability and stability of football clubs. Accordingly, the highest transfer spending occurs in the leagues with the highest revenue generating capacity. In total, between 2016 and 2021 - €7.5 billion will be diverted from the Big 5 leagues.

Analysis of The Influence of Information Availability, Economic Factors and Changing Trends on Travel Agent Business Sustainability in Digital Era

The goal of this study is to identify key factors in travel agent management and then differentiate their impact on the value creation of these companies. Researchers group methodologies for analyzing value creation in travel agencies into several main categories. The methods are interview and economic-financial analysis. Then we identify value creation indicators to determine economic value-added options, then we conduct empirical contrast. The research results reveal that travel agents, acting as intermediaries, have become highly relevant, absorbing nearly all industries of this sector's production. The historical analysis concludes that travel agents underwent a positive evolution in value creation during the studied period. The revolution in information technology, which increased staff productivity, and the process of sector concentration and association, which increased rotation, are the main factors driving this evolution. Investments in financial assets, tangible assets, and intangible assets also play an important role in transforming the sector's productive structure. While the evolution of margins plays a less significant role in value creation, the sector faces challenges due to price wars and strong competition. The positive impact of the sector's debt also increased, contributing to a significant increase in economic value-added. Finally, travel agents need to pay attention to these factors in their management in order to remain competitive and achieve their ultimate goal of creating value in this sector.

Comparison of national intellectual capital of four Asian countries

The purpose of this research is to compare the National Intellectual Capital (IC) of four Asian countries, which are Pakistan, China, India, and Bangladesh. This comparison highlights the importance of intangible assets i.e. IC, in the competitiveness of the countries. The IC framework includes Market Capital (MC), Renewal Capital (RC), Human Capital (HC), and Process Capital (PC). The longitudinal data for 6 years i.e. 2014 to 2019 has been studied for four countries. The IC framework is further studied with the help of 21 indicators. The study showed that the selected countries are highly competitive with each other but a few areas are weak. The result for MC showed that in the fiscal year 2016 trend was at its highest for Pakistan. As for India, it was highest in 2015, but Bangladesh faced a major decline in 2018. China's MC was steady up until 2018 but dropped in 2019. Pakistan's HC dropped drastically since 2017, but for Bangladesh and China, MC showed an improved position. PC for Pakistan, India, and Bangladesh showed a downward trend in the year 2019, only China's PC slightly improved. Looking at RC for all the four countries, they showed an improved position in 2019. It also includes recommendations for policymakers. The results showed that IC and competitiveness are positively co-related, and also highlight the importance of further investment in developing the IC of countries.

Knowledge Management: The Case of Xerox

Recently, the concept of knowledge has been universally recognized as a critical source of achieving competitive advantage for organizations and as an extremely important intangible asset. In today's complex, ever-changing and competitive environment, organizations are challenged in order to successfully manage a wide range of fluctuations, to continuously innovate and deliver value to their customers. To achieve all of the above, they must be open to new ideas and develop a clear understanding of the ways in which knowledge is created, transferred and applied within organizations. Knowledge has been approached as the understanding of a subject or phenomenon, on a theoretical or practical basis. Knowledge management (KM) has been frequently used in recent years as a scientific term, while it has been applied to a range of activity sectors and disciplines. The purpose of KM is to manage, create and enhance the knowledge and intellectual assets of organizations. The effective use of KM can provide a number of benefits to organizations, such as enhancing the quality of services provided, increasing the response time developing innovations, offering above the norm customer value etc. The development of organizational knowledge must be sufficient, so that it can diffuse within the organization and applied where it is needed. Knowledge is increasingly recognized as a critical, strategic resource of organizations. In this paper, secondary data were utilized in order to adequately fulfill the set research objectives developed by the researcher, based on the critical evaluation of existing knowledge. Secondary data was used, while the case study research technique was utilized to develop valuable lessons for the organizations. The organization studied (XEROX) is a rare case of successful implementation of KM and was chosen for this reason. The research objective was to conceptually clarify the concept of KM, link it to organizational performance and provide suggestions in relation to strengthening KM and consolidating organizational processes of knowledge development and transfer.

A Reappraisal on Link between Goodwill and Financial Performance in Sport Industry of Jalandhar

This study presents a comprehensive reconsideration of the subtle relationship between goodwill and financial performance in the sports industry. Traditionally, goodwill has been linked to intangible assets like brand reputation and consumer loyalty, which are difficult to measure. The study explores how goodwill, which is continuously reflected through brand reputation, fan loyalty, functions as a critical asset in improving financial outcomes for sports companies. By evaluating multiple revenue streams like sponsorships, retail sales, broadcast rights, and match day revenues, the study illustrates the mutually beneficial for a goodwill foundation and improved financial success. Furthermore, the study explores the moderating impacts of external factors such as market dynamics, competitive success, and digital media presence, providing a more nuanced picture of how goodwill contributes to long-term financial growth in the sports industry. It investigates how intangible assets like goodwill can be translated into actual financial rewards such as larger sponsorships, bigger ticket sales, and higher television ratings. The study's findings are especially pertinent for sports business owners and industry experts who want to manage the intricacies of managing a team or event in an increasingly competitive market. This reappraisal intends to broaden the debate on sports management and provide concrete lessons for practitioners seeking to harness goodwill as a strategic asset for financial success. Key words: Goodwill, Financial Performance, Sports Industry, Brand Reputation, Fan Loyalty, Sponsorships.

Exploring the Association Between Corporate Financial Credit Risk Management and Corporate Value

In the rapidly changing business environment, corporate financial credit risk management has become a key factor in the stable operation and continuous value enhancement of enterprises. Corporate value is reflected not only in its tangible assets but also in its intangible assets and management capabilities. Among them, financial credit risk management, as an important part of corporate management, is increasingly being paid attention to for its association with corporate value. Financial credit risk management involves the identification, assessment, monitoring, and control of risks related to financial activities, which may stem from market changes, credit defaults, operational errors, and more. Effective financial credit risk management not only helps enterprises reduce potential losses and protect asset safety but also enhances the market reputation and competitiveness of enterprises, thereby increasing their overall value. With the continuous development of financial markets and the strengthening of globalization trends, the financial credit risks faced by enterprises are becoming increasingly complex and varied. Therefore, building a comprehensive financial credit risk management system and enhancing the risk management capabilities of enterprises have become key to achieving sustainable development and creating long-term value.

Mercury Systems: Debt? Equity? Cash on hand?

Research methodology This case was researched using publicly available sources, including Mercury Systems financial filings and press releases, news stories about the seasoned equity offering, financial information from Bloomberg and industry information from IBISWorld Industry Reports and articles related to seasoned/secondary equity offerings, intangible asset valuation and the use of revolving lines of credit. Quotes are taken from Mercury financial reports and press releases and express the (optimistic) opinions of company executives. Case overview/synopsis Mercury Systems, a technology company in the aerospace and defense industry, announced a six million share seasoned stock offering in June 2019. This resulted in a 6% stock price decrease. A stock price decrease is a typical event when a firm announces the issuance of new common shares, but with Mercury Systems, there were concerns about how much money the firm needed to fund its strategy of growth through acquisitions. If internally generated funds were not sufficient, should the firm issue debt or have another seasoned equity issue? Students will look at the objectives and success of the most recent seasoned equity issue, determine future funds needs and how the firm should finance these needs. Complexity academic level This case is appropriate for undergraduate and graduate students in corporate finance electives. Typically, topics such as seasoned equity offerings are not covered in introductory courses, so this is recommended for finance electives. Even in advanced finance courses, sometimes there is insufficient time to cover seasoned equity offerings.

Standalone Valuation Method for Software-as-a-Service Operational Knowledge Derived from Human Intellectual Capital Qualitative Changes

This study focuses on digital operational knowledge belonging to natural persons and proposes a greenfield approach to differentiate the value of intangibles from that of human intellectual capital. Our research approach involves two assessments. Assessment 1 evaluates intangible assets using the internally generated goodwill (IGG) measure. We analyze time-series IGG data for six digital sectors, using the top 90 software-as-a-service (SaaS) companies as a benchmark. The results indicate that the IGG of the SaaS benchmark is higher than the total IGG of the six sectors. Assessment 2 focuses on the correlation between digital labor investment and digital investment returns before and after 2013 for the six sectors to identify positive and negative correlations from 2013 onward. The results indicate that, since 2013, a qualitative change has occurred in digital labor capital that has not been reflected in financial statements because of accounting distortions and that the returns on investment for digital labor have been underestimated. The standalone valuation of digital know-how that belongs to natural persons, previously based on operating expense, will be based on capital expenditure. In addition, amortization will have the same contribution as depreciation of tangible assets to value creation.

Knowledge Management Capabilities on the Performance of Startup Companies: Evidence from Startups in Kerala

Purpose: The purpose of the study is to point out the importance of knowledge management in startup companies. For this, four knowledge management processes—knowledge acquisition, conversion, application, and protection—that may have an impact on startup companies' performance are closely examined.  Design, Methodology, and Approach: The empirical research was conducted by participating 250 startup companies that are registered in the Kerala startup mission from 2015 to 2020, and structural equation modeling (SEM) was applied to determine the relationship between the knowledge management process and startup performance.  Findings: The study supports the resource-based view theory by stating that knowledge management is essential for newly established ventures. It has been found that both knowledge conversion and protection play significant roles in the performance of startup companies. While acquisition and application are insignificant.  Social Implication: This study has several implications, one of which is that institutions and government bodies should focus on implementing knowledge management strategies.  Research Limitation: The study has some drawbacks, including the fact that it only included 250 startup companies from Kerala and had a limited sample size. Therefore, generalizations in a global setting are challenging. Second, other intangible assets that fall beyond the scope of the study also have an impact on how well startup businesses perform.  Originality or Value: The study gives startup founders insight into how knowledge management is important at each stage of their firm's life cycle and affects their ability to raise startup funding.Paper Type: Research Paper

Intangible Assets and Analysts’ Overreaction and Underreaction to Earnings Information: Empirical Evidence from Saudi Arabia

Several prior studies indicate that financial analysts exhibit systematic underreaction to information; others illustrate systematic overreaction. We assume that cognitive biases influence analysts’ behavior and that these misreactions are not systematic, but they depend on the nature of news. As cognitive biases intensify in situations of high ambiguity, we distinguish between bad and good news and investigate the impact of intangible assets—synonymous with high uncertainty and risk—on financial analysts’ reactions. We explore the effect of information conveyed by prior-year earnings announcements on the current-year forecast error. Our findings in the Saudi financial market reveal a tendency for overreaction to positive prior-year earnings change (good performance) and positive prior-year forecast errors (good surprise). Conversely, there is an underreaction to the negative prior-year earnings change (bad performance) and negative prior-year forecast error (bad surprise). Notably, analysts exhibit systematic optimism rather than systematic underreaction or overreaction. The results also highlight that the simultaneous phenomena of overreaction and underreaction is more pronounced in high intangible asset firms compared to low intangible asset firms.

Evolution of Intangible Property to Crypto Assets: Legal Pragmatism in Anglo-American Common Law and Chinese Civil Law

Abstract The emergence of crypto assets, a novel category of assets, has posed significant challenges to property law across various legal systems. The integration of these intangible assets into property law frameworks proves to be complicated for many civil law jurisdictions, which tend to adhere to dogmatic approaches. In contrast, Anglo-American common law and Chinese civil law systems, despite their divergent origins, have exhibited legally pragmatic responses to intangible property, including crypto assets. By examining the development of their property laws concerning property conceptualization and the treatment of emerging intangible assets, this article explores how the historical foundations of Anglo-American common law in feudal tradition and Chinese civil law in communist ideologies have fostered adaptable and flexible notions of property. This adaptability is argued to be a strength within both the Anglo-American common law and Chinese civil law systems, enabling them to accommodate innovative intangible assets more easily compared to their civilian counterparts.

St. Peter, Church and Religion as a Role Model for Modern Entrepreneurs

Modern enterprises operate on the basis of the Industry 4.0 paradigm. Technology is becoming an inherent attribute of the economy, but at the same time, one should bear in mind the employees, who create enterprises, and the spiritual side, so as to maintain a balance between what is tangible and intangible. Religion and spirituality are intertwined and have an impact on business practice and corporate management. Research on a group of young people has shown that faith plays a vital role in running a business. Moreover, the sustainability and uninterrupted activity of the Church can be a model for many companies. Subordinating one’s own affairs and individual ambitions to the common good and higher values, is the direction which managers of modern institutions can follow. Such an enterprise needs a leader, a charismatic leader who, as an intangible asset, will primarily see the value of the employees entrusted to him, and only then, the material value of the company. The personnel function and the humanistic approach are the key aspects of a well-functioning enterprise. The article analyses the role of St. Peter in managing the Church, and indicates the possibility of managing modern enterprises based on Church experience.

Cashing in the Intangible Assets of Whiteness

Cashing in the Intangible Assets of Whiteness

Economics and accounting intangible assets

This article will outline the essence of intangible assets owned by economic agents in economic and accounting aspects. The concept and classification of intangible assets are presented. The main accounts that represent these assets in accounting are presented. The indicators used to evaluate and account for intangible assets are also disclosed, and a methodology for their calculation and accounting is provided. And accordingly, a theory is given for recording business transactions related directly to intangible assets.