Intangible Assets Research Articles

Does it matter who owns firms? Evidence on the impact of supermajority control on private firms in Europe

We explore how the type of owner affects private enterprise investment decisions in Europe. In contrast to the literature, we analyze firms with concentrated (>95%) ownership stakes to reduce the potential that agency problems contaminate our results. We consider four types of supermajority owners – family, institutional, corporate, and state and use detailed ownership and financial information from a large sample of private firms from 24 European countries from 2001 to 2018. We find that family-owned firms exhibit higher gross investment rates and substantially higher sensitivity to investment opportunities, profitability, cash flow, and value-added growth compared to corporate and institutional owners. At the same time, and more consistent with the literature, family-owned firms invest significantly less in intangible assets than other ownership types. To demonstrate the robustness of our results, we employ matching samples complemented by analysis of owner-type transitions from family owners to corporate and institutional owners.

Los bienes patrimoniales de las parroquias urbanas de Guayaquil, una mirada desde la percepción de los visitantes

This research aimed to analyze visitors' perceptions regarding the heritage assets of the urban parishes of Guayaquil. The study was conducted in three phases: determining heritage assets according to categories and parishes, analyzing perceptions based on these heritage assets, and verifying the correlation between visitors' opinions and their origins. A mixed-method approach with descriptive and correlational scope was applied, utilizing documentary techniques and cross-sectional surveys. The findings show a positive evaluation across all parameters, with similar assessments among the three studied population groups: residents, national tourists, and foreign tourists. It is concluded that there is limited updating of the city's intangible assets, despite them being among the most highly valued by tourists.

Tangible, intangible assets and labour productivity growth

PurposeThe aim of this study is to investigate the contribution of tangible and intangible investments in driving labour productivity growth in the European Union over the period 2000–2017 and their role in the short and medium run. Additionally, heterogeneity across countries is accounted for by performing estimates separately for Eastern and Western European countries.Design/methodology/approachThe methodology used to conduct the analysis of the determinants of productivity is the two-way fixed-effect and the system generalised method of moments. We also include country-specific dummies in place of our variable on national innovative capacity as a means to further reduce the number of instruments.FindingsThe results reveal a long-term relationship of investment in intangible assets with labour productivity growth, more specifically of investment in R&D. This relationship holds both when considering the whole set of European countries and for Western European countries, demonstrating that R&D is key to enhancing labour productivity growth. On the contrary, the effect for Eastern countries is negative, probably due to the lack of capacity to turn this investment into an efficient and effective way to foster productivity.Originality/valueBesides confirming the well-known role of tangible and intangible assets in productivity, the heterogeneity shown in our analysis highlights the need for improving capabilities in Eastern countries. Diversifying the decisions on the investments in European countries, depending on the specific needs and their heterogeneity, could help bridge the productivity gap and enhance specific capabilities of the country systems.

THE PRESERVATION OF THE RELIGIOUS CULTURAL PATRIMONY

The present article analyzes the preservation of the religious cultural patrimony of the Catholic Church, whose collection is of great size both in tangible and intangible assets. It is based on concepts related to the patrimony, in accordance to Brazilian law and to deals stablished between Brazil and the Holy See, aiming the universal interest in protecting, promoting and valuing the religious, historical, artistic and cultural patrimony. It showcases local realities of the Society of Saint Francis de Sales in Brazil, specially of the Salesian Province in São Paulo, and of the Salesian Province in Campo Grande. These actions contribute to the historical, artistic and cultural preservation by perpetuating the memorable facts of the church to future generations and by cooperating to spread the knowledge as to correspond to the learning and comprehension of the contexts of each historical period. The preservation of the territory (building/church) has the collective participation and is solidified through religious experiences linked to the sacred place.

Unresolved Financial Reporting Issues: Opportunities for International Accounting Research

ABSTRACT This article identifies unresolved financial reporting issues that research can help resolve and provides examples of how adopting an international perspective can deepen the insights obtained from the research. Some of the issues pertain to well-established literatures—intangible assets, risk and uncertainty, fair value accounting, conservatism, and earnings management. Others are relatively new—namely, sustainability, particularly climate change, and digital assets, particularly crypto assets. Addressing these issues could require a reconsideration of the concepts underlying accounting standards, including thinking more broadly about accounting information to encompass more than information in financial statements, including more nonfinancial information. Regardless, there are many opportunities for international accounting research to address open questions these issues raise to provide insights into how global financial accounting and reporting might be improved.

From intention to action: Understanding bank credit access through the lens of the theory of planned behavior

Research background: Bank credit access plays a determining role in enterprises’ financial growth, competitiveness, and internationalization. However, most entrepreneurs are afraid of being rejected from their credit applications due to financial disadvantages that reduce their probability of receiving credits. To minimize credit access concerns, their entrepreneurial behaviors that are included in the Theory of Planned Behavior (TPB), such as personal attitude (PA), perceived behavioral control (PBC), and subjective norm (SN), might be a good solution. However, depending on cultural differences, their attitudes regarding these factors might change, which also causes changes in firms’ probability of receiving credit. Purpose of the article: This research aims to examine whether the impact of PA, PBC, and SN on credit access of enterprises differ depending on the countries where they do their business. Methods: The researchers investigate 1367 enterprises from different countries. These firms are selected using a purposive sampling method, and then an online questionnaire is sent to the survey respondents. Binary Logistic Regression analyses are performed for analysis purposes. Findings & value added: The results indicate that while the impact of PA on bank credit access does not differ depending on the countries where firms are located, international differences exist in the impacts of PBC and SN on the credit access of enterprises. This paper finds international differences in the impact of RBV’s intangible assets (PA, PBC, SN) on a tangible asset of RBV (financial capability) and explains these results with the factors (economic, political, legal systems) included in Institution-based View, and brings all components of both theories RBV and Institution-based View in a unique research. Financial and educational support from governments and universities for fresh graduate individuals can stimulate entrepreneurial attitudes and financing abilities of prospective entrepreneurs to overcome credit access obstacles.

PUBLIC INVESTMENT, ECONOMIC GROWTH AND EFFICIENCY

The definition of public investment is not as clear and precise as it may seem. Often, public investments are described as public expenditures that contribute to the stock of physical capital, encompassing tangible assets such as properties (excluding land), buildings and other structures (e.g., roads, airports, hospitals, schools, telecommunication structures, government buildings, bridges, etc.), machinery, transportation equipment, and intangible assets like intellectual property (OECD, 2016). Therefore, public investment is the allocation of funds that result in the growth of the aforementioned items. Public investment can be viewed as a political tool in the hands of a government, capable of altering or determining the course that a country's economy and other aspects of life will take. Governments utilize public investments to respond to a variety of challenges over time, addressing global issues such as climate change and local problems like periods of economic decline, diverse demographic trends, rapid urbanization, or adaptation to new technologies. As emphasized by the European Investment Bank, "properly functioning infrastructure networks are the backbone of flourishing economies" (European Investment Bank, 2010). Public investments are integral for economic and social prosperity, contributing to the national capital stock by allocating resources to essential basic infrastructure, education, research and development, thereby leading to increased productivity and improved living standards. The aim of this article is to analyze the role of public investments in the economy in addressing contemporary challenges.

Modern Aspects of Accounting for Intangible Assets: Analysis of Key Risks

Modern Aspects of Accounting for Intangible Assets: Analysis of Key Risks

EKONOMI KREATIF SEBAGAI LOKOMOTIF BARU PEREKONOMIAN INDONESIA MENUJU INDONESIA YANG MAJU

In recent years, attention towards the creative economy has increased on a global scale. This concept refers to an economy that is not only based on physical goods, but also involves the ownership of intangible assets, such as innovation and creativity. This article aims to explain how the creative economy can become a major driver in Indonesia's economy, potentially leading the country towards a more advanced future. The discussion includes a paradigm shift from an economy focused on physical production to one that emphasizes innovation, as well as a transformation from a recorded economy to a creativity-based economy. Furthermore, the article reveals how the creative economy can help Indonesia develop more innovative industries and compete in the international market. The use of the creative economy is also expected to reduce poverty levels and create a brighter future for the national economy. Therefore, success in implementing policies and utilizing Indonesia's high creative potential will lead the country towards an innovative, competitive, and sustainable economy in the future.

Attributes Driving Intangible Asset Valuation

The inherent complexity and subjectivity of assessing assets such as intangible asset, posing challenges for standardized methodologies and accurate financial reporting, this complexity is compounded by the consideration of various valuation criteria, some of which are ill-suited for appraising intangible assets, this study is dedicated to assessing the key attributes that drive the valuation of intangible assets, aiming to construct a comprehensive framework for their valuation. Employing a mixed-methods approach, both quantitative and qualitative research designs were employed, utilizing survey questionnaires, semi-structured interviews, and focus group discussions. Purposive sampling was employed to select participants and the data analysis involved descriptive and thematic content analysis. The study's findings underscored the paramount economic attributes of intangible assets, highlighting the significance of economic life span and company’s value driver. Conversely, attributes categorized as company’s value distracters were identified as less important, with novelty exhibiting the highest mean value of 4.6. Additional attributes such as originality, legal protection, royalty of the asset, and life span right of protection also contributed significantly to the valuation process. Qualitative findings revealed that the market and income methods of valuation are predominant in intangible asset valuation practices. The study demonstrated that the choice of valuation method hinges on information availability, with attributes like economic life span and historic income influencing the value derivation process using income and market approaches. The study concludes by illustrating its findings through the development of a tangible intangible asset’s valuation framework, providing a structured guide for assessing and determining the worth of intangible assets in a more systematic and informed manner.

The Role of Local Cultural Heritage in Community Empowerment: The Case of Gentur Lantern in Jambudipa Village, Indonesia

ABSTRACT Ngalogat is a type of pesantren tradition in Indonesia that is increasingly recognized as a local cultural heritage. However, there have been limited studies on the local potentials and assets in Jambudipa Village. This paper aims to explore the transformation of the Ngalogat tradition into new commodities, specifically Gentur lantern crafts, as a contribution to heritage studies. The research utilized a phenomenological approach involving observation, in-depth interviews, and documentation. The results indicate that the preservation of Ngalogat as a Gentur lamp commodity is indirectly influenced by religious figures advising students (Santri) living in Jambudipa and promoting the iconic heritage to residents. This has led the local government to initiate One Village One Product program, involving locals in producing Gentur lamps. While the pesantren traditions were once viewed with suspicion during the Dutch colonial regime, the post-independence era has brought hope for preserving local cultural heritage as a national identity and a driver of national development. However, these potentials have not been fully realized as authentic crafts of the people. This study suggests that the government should assist local communities in nominating intangible cultural assets to the World Heritage Committee (WHC) to gain recognition and protection of local identity.

The impact of intellectual capital on local authorities performance in property tax reassessment: the mediating role of process innovation

PurposeThis study aims to investigate the factors influencing property tax reassessment performance in West Malaysia. It specifically examines intangible aspects, such as intellectual capital and process innovation among valuation officers. The primary concern in this study is the variability in how effectively local authorities carry out property tax reassessment, with a significant number of them not conducting revaluations regularly.Design/methodology/approachThe data was collected using self-administered and electronic questionnaires using a purposive sampling method. The 154 useable responses were further analysed using partial least squares structural equation modelling in SmartPLS 4.FindingsThe result shows that process innovation mediates the relationship between structural capital and property tax reassessment performance as well as the relationship between relational capital and property tax reassessment performance. This suggests that local authority systems and policies are indirectly related to reassessment practises by introducing new methods of reassessment in the form of administration and technology. The result shows that building good relationships with stakeholders and other institutions encourages staff to develop innovative ideas for their reassessment activities, thus enhance the performance of property tax reassessment.Practical implicationsThe study provides insightful information for local authorities managers and stakeholders in crafting a better policy for periodic property tax reassessment. The study suggests the need for new administration and technological innovation in developing effective property tax reassessment strategies through the integration of organisational structure and relationship building.Originality/valueThe study developed a new model for property tax reassessment performance that incorporates intangible assets with the introduction of process innovation as a mediator.

Depreciation and impairment of non-financial assets in higher education institutions: Analysis and evaluation

Subject. The article investigates the state of presentation of information on depreciation and impairment of non-financial assets by Russian universities, and prospects for its improvement. Objectives. The aim is to summarize and systematize the provisions of the current federal accounting standards for public finance, governing the depreciation and impairment of non-financial assets, study the practice of accounting policy formation by higher education institutions in relation to non-financial assets based on the specifics of these organizations’ activities. Methods. The study employs observation, comparison, generalization, and interpretation, the analysis of the content of federal accounting standards for public finance, accounting policies for depreciation and impairment of non-financial assets of 26 higher education institutions in Russia. Results. Most higher education institutions do not consider the procedure for calculating depreciation of the structural part of fixed assets. Some universities apply the procedure for calculating amortization of intangibles that does not comply with the provisions of the federal accounting standards for public finance in relation to intangible assets with indefinite useful life. No university identifies signs of impairment or reflects non-financial assets less impairment losses in accounting statements, thus preventing their objective evaluation. Conclusions. I offered a unified approach to identifying external and internal signs of possible impairment of assets by higher education institutions, given the specifics of their activities. The paper established a sequence of actions when testing a cash-generating asset for impairment.

R&D tax allowance and voluntary information disclosures

Purpose: This paper examines whether the R&D tax allowance in force in Poland since 2016 has increased the voluntary disclosure of information on innovation, R&D, and strategic plans in the management commentary of companies listed on the Warsaw Stock Exchange (WSE). Methodology/approach: First, the Tobit model was used to examine the determinants of recognising development works in a sample of 29,288 observations from 3,406 firms. Second, it uses logit and generalised least squares (GLS) methods to analyse 556 management commentaries from 97 public companies that benefited from the R&D tax allowance between 2016 and 2021. Findings: We show that tax relief increases the probability of recognising develop-ment work and disclosing information about patents to signal innovativeness and engagement in R&D. Indebted companies disclose more R&D information and strategic plans. IFRS and advanced management increase disclosures, as opposed to tax planning that uses tax havens or that is supported by more advisors. Companies audited by the Big 4 provide fewer details on R&D outcomes and strategic plans. Research limitations/implications: Extending the sample requires collecting disclosure data based on the wording in management commentaries using text-mining tools. Originality/value: The paper contributes to the literature by identifying that R&D tax allowance influences voluntary R&D information disclosure in management commentaries, especially by smaller companies in debt with larger intangible assets.

Pricing the missing intangible capital: Evidence from the China A‐share market

AbstractThis study develops novel proxies for firm‐level intangible capital in China's A‐share market and assesses its pricing implications. We compile intangible capital from relevant expenditure entries detailed in the notes of financial statements and assess them using perpetual inventory methods, accounting for industry‐specific variations. Our findings reveal a significant positive intangible capital premium. Additionally, the intangible capital factor substantially improves the performance of the Fama–French three‐ and five‐factor models, and other widely accepted pricing models. This research contributes to the broader understanding of modern production paradigms that increasingly rely on intangible assets and investigates their valuation implications in financial markets.

Особливості організації ІТ-компаній та основи здійснення обліку в Україні

The article deals with the development of the IT industry in Ukraine, its impact on the economy of the state and measures to stimulate investment through the IT sector. The basics of organizing the activities of IT companies and the accounting process in accordance with modern conditions are investigated. On the basis of the study, the author generalizes the distribution of IT companies according to the specifics of economic activity, and distinguishes two business models – product and service. Attention is also paid to the accounting policy of the company and the aspects that need to be considered when organizing the accounting of this type of enterprise, namely: recognition of fixed assets and intangible assets, determination of the cost of services. In addition, attention was paid to such an important issue as taxation. How exactly is taxation carried out, what benefits and tax relief are offered to businesses in this industry.

DOES INTELLECTUAL CAPITAL STRENGTHEN ENVIRONMENTAL DISCLOSURE ON FINANCIAL PERFORMANCE DURING COVID-19?

This research aims to examine the moderating role of Intellectual Capital (IC) on the influence of Environmental Disclosure (ED) on Financial Performance (FP) in the energy sector listed on the IDX for the period 2020 to 2022. The analysis uses Ordinary Least Square (OLS). The research results found that IC was able to moderate the relationship between ED and EP. This research contributes to the RBV theory regarding IC, an intangible asset in this case that can play a role in increasing ED and FP and encouraging the company's competitive advantage. Apart from that, this research also contributes to sustainability theory, which states that sustainability in companies requires the role of IC as a variable that can encourage ED to increase FP. Thus, IC becomes an important variable that companies must consider to increase FP while still paying attention to sustainability factors.

Research on Community Participation and Social Responsibility of Higher Vocational Colleges in the Inheritance of Intangible Cultural Heritage Rope Weaving

Higher vocational colleges are becoming more and more significant in the inheritance of intangible cultural assets as awareness of the need to safeguard them grows. Taking intangible cultural heritage rope weaving as an example, this paper discusses the community participation and social responsibility practice of higher vocational colleges in the inheritance of intangible cultural heritage rope weaving. Higher vocational colleges have successfully supported the inheritance and development of intangible cultural heritage rope weaving by establishing research centers, offering pertinent courses, and organizing cultural events in collaboration with the community, according to case analysis and hands-on investigation. These practices not only enhance the awareness and participation of community residents in the intangible cultural heritage rope weaving, but also promote the activeness of community culture and economic development. In order to help higher vocational colleges fulfill their social obligations and advance the sustainable development of intangible cultural heritage rope weaving, this paper makes some strategic recommendations for how they can improve education, increase community cooperation, use digital technology, and strengthen interdisciplinary research in the field of intangible cultural heritage rope weaving.

The Impact of Intangible Assets on Capital Structure in Asia

Past studies find evidence that the level of intangible assets is positively related to corporate borrowing in the United States. This paper explores the relationship between intangible assets and capital structure for Asian countries. We identify a positive relationship between intangible asset investment and debt levels throughout Asia. Unlike in the United States, this positive relationship appears to be significant for non-Goodwill and Goodwill intangible assets. Further, we find that the magnitude of this relationship is significantly greater for developed Asian countries than for developing ones. We explore explanations for this difference related to firm size, firm age, cash flow volatility, and a firm’s likelihood to default on its debt.

Research on the Synergy between Economic Returns and Safety Investments in Enterprises

Coal, as a key input factor to ensure China's economic growth, plays an important role in the orderly development of its industry. The safety guarantee of production link is the only way to ensure the stable development of the industry, so it is in urgent need of the investment of safety funds and effective implementation to protect it. As a high-risk industry, the coal industry has a poor working environment, difficult working conditions, backward safety technology, and endless hidden dangers. In the process of development, the coal industry blindly pursues benefits while ignoring safety investment, which is exactly a common problem in China's coal enterprises and also the deep cause of coal mine safety accidents. This paper uses relevant theories to analyze the effect of coal enterprises' safety investment on economic benefit and determine its equilibrium point of safety and economic benefit. From micro level of building model, neural network model for coal enterprise economic benefit is explained variable, safety input as explanatory variables, core number of coal production, labor, labor productivity, and fixed assets and intangible assets investment as a intervening variable, such as inspection cause nonlinear relationship between safety investment and economic benefit are intermediary variables, measure the influence of different variables on economic benefit enterprise security mechanism, which integrated the result of theoretical analysis and empirical research, puts forward coal enterprises safety investment economic efficiency maximization of promotion strategy.