Proportion Of Intangible Assets Research Articles

The sources of value creation in acquisitions of intangible assets

We document that acquirer announcement returns and post-M&A performance rise with a target's proportion of intangible assets. This shareholder wealth creation is associated with profitable acquirers purchasing complementary intangible assets and promising growth options from less profitable targets. Purchase prices are lower when targets face financial constraints limiting their ability to pursue promising investment opportunities. Analyzing acquisitions across different classes of intangible assets and matching successful with failed bids for targets with intangible assets support our main findings and suggest that these results are robust to endogeneity concerns. We conclude that target intangible assets provide important sources of M&A value creation.

Intellectual Property Pledge Value Evaluation for Listed Companies: a Case Study of Yunnan Baiyao Enterprise

In modern enterprise assets, the proportion of intangible assets is not only an important standard to measure the competitiveness of an enterprise, but also an important way to obtain financing. Bank loans can be obtained through the pledge of intellectual property rights to solve the capital problems encountered in the development process of enterprises. However, the difficulty of intellectual property pledge is value evaluation, and intellectual property belongs to intangible assets, and its uncertain characteristics easily lead to more problems in the process of value evaluation. In addition, the traditional value evaluation methods have certain limitations. This paper selects Yunnan Baiyao enterprises as an example to study the value evaluation of intellectual property pledge of listed companies. In this paper, domestic and foreign scholars on the status of intellectual property pledge research, analysis of the focus of domestic and foreign research, at the same time, the status quo of value evaluation is analyzed, and combined with three basic methods of intellectual property value evaluation are analyzed, and taking Yunnan Baiyao enterprise as an example, the application of intellectual property pledge value evaluation method is illustrated, and relevant enlightenment and suggestions are obtained. Finally, this paper summarizes the full text and prospects the evaluation methods of intellectual property pledge value of Listed Companies in China. The text studies the advanced experience of municipal solid waste treat.

Capital Structure of Innovative Companies in BRICS Countries

This article aims to identify the main business and economic determinants of capital structure in a sample of innovativecompanies from BRICS countries.We achieve this by presenting a comparative analysis of 1,437 high-tech and 1,485 non-innovative companies in thepharmaceuticals, electronics, IT, and telecommunications sectors between 2008 and 2015. We conduct a regressionanalysis using a significant number of variables, such as profitability, size, proportion of tangible assets, and growthpotential. The highlighted parameters are then examined in order to identify the characteristic features displayed in thecapital structure of innovative firms.Our results indicate that the following company characteristics are relevant in determining capital structure: informationasymmetry costs (those which are associated with the unique activities of innovative companies), high growthpotential generated by the availability of network effects, a high innovative applicability, low marginal and transportcosts, and a high proportion of intangible assets. Moreover, we found that there is a distinct difference in the capitalstructure of companies as they vary in levels of innovation. An innovative company’s proportion of intangible assetshas a multidirectional effect on the debt amount. The potential for growth is also a significant factor which has apredominantly negative effect on the level of an innovative company’s financial leverage. Levels of borrowing are overalllower for innovative firms.Our major conclusion, drawing from the results above, is that innovative companies in BRICS countries use relativelylittle debt in the case of high growth potential. This indicates a general need to overcome the information asymmetrychallenge in order to increase the growth rates of individual companies.The scientific novelty of this analysis relates most strongly to the broadness of scope of our investigation, the focuson BRICS countries specifically, and the applicability of its conclusions in wider business and economic contexts. Thebreadth of data from a wide range of companies and sectors (both innovative and non-innovative), and the high numberof companies utilized in the study, lend our evaluation an undeniable credibility within its scope, especially where itupholds similar conclusions in related literature of narrower focus. As a corollary to this, it may be conceivably assertedthat these results are not merely applicable to individual companies, or even sectors of the economy, but due to theirwide field of origin, they can have economy-wide implications on business and financial strategies.

Аналіз методів оцінки нематеріальних активів

of intangible assets for accounting purposes and their reflection in the reporting is very important, because the proportion of intangible assets in the balance sheet characterizes the strategy chosen by the enterprise, indicates the level of innovation. The purpose of the article is to analyze and systematize various approaches and methods for evaluating intangible assets, which disclosed in international and national standards to identify problematic issues and disagreements between them. In the article, the author compares the norms of the following international and national standards regarding the valuation of intangible assets: International Valuation Standard 210 Intangible Assets, National Standard No. 4 Evaluation of Intellectual Property Rights, International Accounting Standard 38 Intangible Assets, National Accounting Standard 8 Intangible assets. It was determined in what cases and for what purposes the intangible assets are evaluated. A comparative analysis of methodical approaches and methods for the evaluation of intangible assets and intellectual property rights has been carried out. It was revealed that international standards contain a wide range of methodical approaches and methods for the evaluation of intangible assets, which is due to the large range of objects to be evaluated. It has been established that some disagreements arose due to the inaccuracy of translating international standards into Ukrainian. Although Ukrainian Accounting Standards are developed on the basis of international, they may contain slightly different approaches to valuation and accounting – the author shows this by comparing the norms of IAS 38 and National Accounting Standard 8. So, the need to harmonize the norms of international and Ukrainian standards for evaluating intangible assets was justified by unifying methods and approaches to valuation.

Stock Options and Management Timing:Evidence from China

This paper empirically tests management timing in the listed companies when the mangers are awarded stock options. It comes to the results as follows:firstly, interval pricing samples award the management timing stock options to reduce exercise prices; secondly, interval and daily pricing samples have timing good information disclosure after the pricing benchmark date to increase the value of stock options; thirdly, with large power of the management, lower-degree corporate governance and state-owned ultimate controllers, the probability of simultaneous timing stock options and information disclosure by the management is higher and the proportion of intangible assets&firm size reduce the probability abovementioned. It enriches and extends existing management timing research, and is of great significance to effective promotion of management stock options plan and the inhibition on management timing behavior.

КОРПОРАТИВНЕ УПРАВЛІННЯ В УКРАЇНІ: ПРОБЛЕМИ ТА ШЛЯХИ ЇХ ВИРІШЕННЯ

Корпорації, на сучасному етапі розвитку нашої країни, можуть стати одним із потужних і ефективних інструментів управління сучасними бізнес процесами. Запорукою не тільки інвестиційної привабливості компанії, ай гарантією ефективного функціонування підприємств в умовах зростаючої конкурентної боротьби, є ефективність корпоративного управління, і тому проблема поліпшення корпоративного управління викликає підвищений інтерес не тільки з боку вітчизняного бізнесу, законодавчої і виконавчої влади, але й вітчизняної економічної науки.
 Проведені дослідження підтверджують факт, що корпоративне управління, це складний процес, який поєднує в собі організаційно–правові, економічні, мотиваційні, соціально–психологічні та інші механізми. Ефективне управління корпораціями дає можливість по новому займатися підприємницькою діяльністю, шляхом поліпшення фінансових результатів компанії за рахунок більш високої продуктивності (рентабельності), інвестиційного капіталу, мобілізація капіталу для швидшого виконання проектів, ніж конкуренти. Критерії ефективного корпоративного управління можна розглядами двома загальним складовими: значна частка нематеріальних активів, що призводить до зростанні вартості та інвестиційної привабливості на ринку; наявність гарантованого дисциплінарного контролю за роботою топ–менеджерів.
 Процес корпоративного управління охоплює всіх учасників зацікавлених в розвитку корпорації, кожна з яких має свої інтереси. Вдосконалення системи корпоративного управління сприяє підвищенню ефективності організацій та розширенню їх доступу до зовнішніх джерел фінансування, що є однією з умов стійкого зростання економіки. Удосконалення системи корпоративного управління залишається одним із пріоритетних завдань, як на загальнодержавному рівні так і на міжнародному, проте вони мають бути розроблені з врахуванням інтересів всіх учасників.
 Крім вище перерахованих напрямів вирішення проблем корпоративного управління подальшого дослідження заслуговують такі його аспекти, як: посилення впливу держави на процеси корпоративного управління; збільшення відповідальності вищого керівництва перед усіма акціонерами; посилення ролі аудиторської діяльності управлінських органів корпорації; формування системи управління ризиками та ціла низка інших актуальних проблеми.

ТЕОРЕТИКО-МЕТОДИЧЕСКИЙ ПОДХОД К ОЦЕНКЕ УРОВНЯ РАЗВИТИЯ ПРЕДПРИЯТИЯ В УСЛОВИЯХ ГЛОБАЛИЗАЦИИ

The subject of this article is theoretical, methodical and practical aspects of enterprise development in conditions of globalization. The purpose of this research is to provide theoretical and methodical approach to an assessment of a level of development of the enterprise, which is based on the relationship between the factors and influence, illustrating the effect of the internal and external environment of enterprises functioning, and indicates the level of development of the enterprise. Methodology. Theoretical basis of the study was the examination and rethinking of the main achievements of world and domestic science on the development of enterprises. To achieve the objectives of the research following methods were used: systemic and structural analysis for the formation of methodical approaches to the selection of the factors, influencing the development of enterprises; abstract and logical – for the formulation of conclusions and proposals; the method of valuation and expert assessments to the implementation of the proposed theoretical and methodical approach to an assessment of a level of development of the enterprise in conditions of globalization. Results of the research is the proposed theoretical and methodical to an assessment of a level of development of the enterprise in conditions of globalization, which is associated with the idea of development of the enterprise as a system with inputs–factors, influencing on the development , and outputs – indicators of the level of enterprise development within these factors. So, the chosen factors – resources, financial-economic activity, innovation and investment activities, competition, government influence, and foreign trade. Indicators that express these factors, are capital productivity, labour productivity, material efficiency within the first factor; the profitability of the activity, the coefficient of current assets, the total liquidity coefficient, financial stability coefficient, the coefficient of Beaver within the second factor; the proportion of intangible assets, the coefficient of investment in the third factor; the market share of enterprises in total volume of industry's production in the fourth aspect; the coefficient of the tax burden under the fifth factor and the share of exports in total production in the last factor. Within this approach to avoid the different dimensions of the particular indicators illustrating the level of the enterprises development it’s carried out their rationing. The importance of each factor influencing the level of development of the enterprise in conditions of globalization can be conducted through the use of expert research, verification of the representativeness of which is by using the coefficient of concordance to determine the level of consistency of experts’ opinions and the criterion of Pearson, which confirms its importance. In the event of a sufficient consistency of opinion of experts have the ability to offer an integrated indicator of the level of development of the enterprise in conditions of globalization through the use of a common desirability function of Harrington. Assessment of a level of development of the enterprise in conditions of globalization for a particular industry is by using well-known scales of desirability, which is in the range from 0 to 1 and allows one to calculate the integral indicator and to determine the level of development as high, medium, low and critically low.

The Effect Of Credit Rating Categories On Analysts' Information Environment: Evidence From The Korean Market

<p>Credit ratings have been widely utilized for their ability to convey information to investors easily and quickly. Credit ratings agencies have prospered due to their superior positions in the information-gathering process in the business world. However, recent news about grade reversals, abrupt downgrades, and unanticipated bankruptcy suggests that the market value of credit ratings may have been overstated. Hence, in this study, we evaluate the legitimacy of the suggestion that credit rating categories may provide analysts with useful information.</p><p> </p><p>In order to measure the variables in the information environment, we use analyst forecasts. Differences between forecasts in the various rating categories are found to be statistically significant. Furthermore, a comparative analysis of information intensity for ungraded firms with that of other firms demonstrates that overestimates of ungraded firms create problems of the same nature as those in the information environment of firms with speculative grades.</p><p> </p><p>In the inter- and intra-category analyses, various factors determine the transparency of the information environment for firms of investment grade, including accruals quality, conservatism, the interest coverage ratio, and the proportion of intangible assets. However, for less credible firms, such as speculative or ungraded firms, these determinants do not function as expected. We find that the interest coverage ratio may be used to provide detailed differentiation between less credible firms. This paper introduces a new approach to credit rating categories and related strategies, emphasizing the importance of the ability to repay debt.</p>

Ativos intangíveis e gerenciamento de resultados: uma análise em empresas brasileiras listadas na BM&FBovespa

Considering the increasing visibility and interest that the themes intangible assets and earnings management have been attracting in researchers and in companies, this study aimed to analyze the relationship between the proportion of intangible assets in total assets and earnings management in Brazilian companies listed in different levels of BM&FBovespa Corporate Governance. We carried out a descriptive research, conducted through document analysis and a quantitative approach of the data that were obtained through the accompanying notes, management reports, and Economatica database for the period 2009 to 2010. The sample comprised 203 companies listed in different levels of BM&FBovespa Corporate Governance that presented a balance of intangible assets during the period. Initially we calculated the percentage of intangible assets in relation to total assets for each company. Then we calculated the earnings management through the model of Kang and Sivaramakrishnan (1995). For the data analysis, descriptive statistics measures and the Pearson correlation analysis were used. The survey results showed a good representation of the intangible assets and considerable rates of earnings management. They also showed that there were statistically significant correlations between intangibility and earnings management only among companies listed in the Novo Mercado, indicating that this level of corporate governance firms with higher percentages of intangible assets in relation to total assets had lower levels of earnings management. Keywords: intangible assets, earnings management, Brazilian companies.

Innovation and R&D Activities in China?s Biotechnology and Pharmaceutical Sectors

This paper examines innovation and R&D expenditures in China’s biotechnology and pharmaceutical sectors. We found that R&D spending for these industries was much lower than spending in operating activities, which suggests a suboptimal allocation of resources. We also found that the proportion of intangible assets to total assets (including patents, trademarks and licenses) were also much lower than those in industrialized countries such as Canada and the U.S. We also examined other factors that were associated with R&D spending in these sectors. Using the China Stock Market Financial Statement Database and the SINA financial database, it was found that Chinese biotechnology and pharmaceutical firms’ expenditures in R&D activities are positively associated with ownership structure, but negatively associated with firm size, and with investments in other assets including inventory and fixed assets.

R&D, Advertising and the Market Value of Internet Firms: Part I

ABSTRACT This article is the first part of the study that attempts to explain the valuation of Internet firms during the dot.com “bubble” period from 1996 to 2000. One section of the article is dedicated to detailed literature review on valuation of firms, particularly firms with a high proportion of intangible assets. Another section presents a theoretical foundation for valuation on Internet firms based on the investment opportunities approach to valuation of growth shares. Finally, the last section presents testable hypotheses regarding the relationships between market values of Internet firms and several independent variables.

The value impact of internationalization: theory and evidence, the French case

Outlines the three theories which link multinationality to share value (internalization, imperfect capital markets and managerial objectives), reviews the relevant research and hypothesizes that a multinational’s degree of internalization is positively related to its accounting value (q‐value). Tests this using 1994‐1998 data on French listed companies and presents the results which support the hypothesis, the existence of a size effect (smaller firms have higher q‐values) and leverage effect (higher debts are linked with lower q‐values), but sow no significance in the proportion of intangible assets; i.e. they support the imperfect capital markets theory but not the internalization theory. Considers consistency with other research and opportunities for further research.

Why Do Companies Go Public? Empirical Evidence from Germany's Neuer Markt

Comparing the balance sheet structure of privately held German firms and companies which went public on Neuer Markt, Europe's dominant stock market segment for growth firms, we analyse the determinants of initial public offerings (IPOs) of technology-based firms. The likelihood of an IPO is increasing in the proportion of intangible assets as well as R&D intensity. IPOs are more likely for firms that grew and invested a lot. Leverage is only significant in year two before flotation and increases the probability of going public. We conclude that issuers on Neuer Markt are in urgent need of equity capital to fund new investment. The analysis of the companies that went public in other stock market segments on Frankfurt Stock Exchange shows that these IPO were realised at a time when the issuers were in sound eco-nomic and financial conditions. In a second step, the evolution of ownership and control around the IPO is analysed. The controlling shareholders of the Neuer Markt companies, most often board members, keep tight control over the firm's assets even after flotation. Founders continue to hold a significant stake of voting equity and keep up to be strongly represented in the firm's management and supervisory board. Board members typically use the IPO not only as a vehicle to get new funding without any significant loss of control due to a dispersed allocation of sold shares. They even consolidate control as the relative size of their blockholding - in comparison with the other blockholders' stakes - increases.