The impact of intangible assets on firms’ sustainable growth and value with the role of intellectual capital in firms listed on the Tehran Stock Exchange
محورهای موضوعی : Agriculture Marketing and CommercializationZahra Houshmand Naghibi 1 , Mitra Mirzaei 2
1 - Department of Accounting and Management Accounting, Islamshahr Islamic Azad University, Iran
2 - Master's student in accounting, Islamic Azad University, Islamshahr branch
کلید واژه: Intangible Assets, Sustainable Growth, Firm Value, The Role Of Intellectual Capital,
چکیده مقاله :
The present study seeks to examine how intangible assets affect firm value and sustainable growth with the role of intellectual capital in firms listed on the Tehran Stock Exchange. The present work is an applied piece of research in terms of research goals and descriptive research in terms of nature and methods. As this study analyzes the current state of indicators by collecting data from the past, it also falls into the category of descriptive and retrospective studies. To perform this study, four hypotheses were developed and 138 firms were sampled through systematic elimination over the seven years of 2015-2021. Data on research indicators were collected in Excel and analyzed in Eviews statistical software. The results of testing the hypotheses suggested that intangible assets affected sustainable growth and firm value directly and significantly. Moreover, intellectual capital was revealed to impact the relationship between intangible assets and sustainable growth as well as the relationship between intangible assets and firm value.
The present study seeks to examine how intangible assets affect firm value and sustainable growth with the role of intellectual capital in firms listed on the Tehran Stock Exchange. The present work is an applied piece of research in terms of research goals and descriptive research in terms of nature and methods. As this study analyzes the current state of indicators by collecting data from the past, it also falls into the category of descriptive and retrospective studies. To perform this study, four hypotheses were developed and 138 firms were sampled through systematic elimination over the seven years of 2015-2021. Data on research indicators were collected in Excel and analyzed in Eviews statistical software. The results of testing the hypotheses suggested that intangible assets affected sustainable growth and firm value directly and significantly. Moreover, intellectual capital was revealed to impact the relationship between intangible assets and sustainable growth as well as the relationship between intangible assets and firm value.
Albertini, E. and Berger-Remy, F. (2019), “Intellectual capital and financial performance: a meta-analysis and research agenda”, AIMS Management, Vol. 22 No. 2, pp. 216-249.
Al-Hamadeen, R., Alsharairi, M & Qaqish, H. (2014). Intangible Disclosure: Evidence from Annual Reports of the Jordanian Industrial Public Listed Companies.
Andreeva, T. and Garanina, T. (2016), “Do all elements of intellectual capital matter for organizational performance? Evidence from Russian context”, Journal of Intellectual Capital, Vol. 17 No. 2, pp. 397-412.
Bayat Roghaieh Shabani Maryam, and Kalantari, Mohammad Hossein (2016) The impact of investment in intangible assets on future operating cash flows of companies listed on Tehran Stock Exchange, Management and Accounting Studies Quarterly, 97-85 (1) (In Persian)
Boiko, K. (2021), “R&D activity and firm performance: mapping the field”, Management Review Quarterly, Vol. 1, pp. 1-37.
Canibano, L., Garcia-Ayuso, M. and Sanchez, P. (2000), “Accounting for intangibles: a literature review”, Journal of Accounting Literature, Vol. 19 No. 1, pp. 102-130.
Chander, S., & Mehra, V. (2011). A study on intangible assets disclosure: An evidence from Indian companies. Intangible Capital, 2011 – 7(1): 1-30.
Chauvin, K.W. and Hirschey, M. (1993), “Advertising, R&D expenditures and the market value of the firm”, Financial Management, Vol. 22 No. 4, Winter, pp. 128-140.
Cheraghi Babak, Torabi Taghi, Mohammadi Taimur, and Taghavi Mahdi (2019). Investigating the obstacles to sustainable economic growth from a social capital perspective in Iran's economy. Journal: Economic Growth and Development Research Year: 2019, Volume: 9, Number: 34, Pages: 77-98. (In Persian)
Cohen, J.A. (2005), Intangible Assets: Valuation and Economic Benefit, Wiley Finance, New York.
Corrado, C.A., Hulten, C.R. and Sichel, D. (2005), “Measuring capital and technology: an expanded framework”, in Corrado, C.A., Haltiwanger, J. and Sichel, D. (Eds), Measuring Capital in the New Economy, The University of Chicago Press, Chicago, Vol. 65, pp. 11-45.
Dalirian Akbar, Meshki Mehdi, Mohammadi Nodeh Fazel, and Khordiar Sina (2019). Ending the conventional method of intangible asset reporting: the need to start a new approach. Journal: Knowledge of Accounting and Management Audit Year: 2018, Volume: 8, Number: 32, Pages: 259-272. (in Persian)
Dianti Deilmi Zahra, Moradzadeh Fard Mehdi, and Mazaheri Ali (2013). The influence of management tenure on firm value, agency costs, and information risk. Accounting experimental research, third year, fall 2013, no. 9. (In Persian)
Fonseka, M.M., Tian, G.L. and Li, L.-C. (2014), “Impact of financial capability on firms’ competitiveness and sustainability: evidence from highly regulated Chinese market”, Chinese Management Studies, SI, Vol. 8 No. 4, pp. 593-623.
Gamayuni, R.R. (2015), "The effect of an intangible asset, financial performance, and financial policies on the firm value", International Journal of Science and Technology Research, Vol. 4, pp. 202-212.
Gao, Lei; Zhang, Joseph H. (2018). ''Firms’ Earnings Smoothing, Corporate Social Responsibility, and Valuation''. Journal of Corporate Finance, doi:10.1016/j.jcorpfin.2015.03.004.
Gelb, D.S., Zarowin, P., (2003). Corporate disclosure policy and the informativeness of stock prices. Review of Accounting Studies, Vol.7, No.1, pp.33-52.
Guo, W.-C., Shiah-Hou, S.-R. and Chien, W.-J. (2012), “A study on intellectual capital and firm performance in biotech companies”, Applied Economics Letters, Vol. 19 No. 16, pp. 1603-1608.
Hassas Yeganeh Yahya, Sohrabi Hossein Ali and Ghawasi Kenari Mohammad (2020). The relationship between social responsibility reporting and firm value. Volume 12, Number 45 - Serial Number 45 April 2019 Page 1-20. (In Persian)
Hejazi Rezvan and Alipour Mohammad (2016). The significance of measuring intellectual capital. Accounting research, fifth term, spring 2016, number 4 (20 consecutive). (In Persian)
Johnson, W.H.A. (1999), “An integrative taxonomy of intellectual capital: measuring the stock and flow of intellectual capital components in the firm”, International Journal of Technology Management, Vol. 18 Nos 5/6/7/8, pp. 562-575.
Kafouros, M. and Aliyev, M. (2016), “Institutions and foreign subsidiary growth in transition economies: the role of intangible assets and capabilities”, Journal of Management Studies, Vol. 53 No. 4, pp. 580-607.
Kang, H. (2006). Reporting Intangible Assets: Voluntary Disclosure Practices of Top Emerging Market Companies.
Khalique, M. and Bontis, N. (2015), “Intellectual capital in small and medium enterprises in Pakistan”, Journal of Intellectual Capital, Vol. 16 No. 1, pp. 224-238.
Lee, M. and Choi, M. (2015), "Analysis on the time-lag effect of research and development investment in the pharmaceutical industry in Korea", Osong Public Health and Research Perspectives, Vol. 6, pp. 241-248.
Lev, B. (2001), Intangibles: Management, Measurement, and Reporting, Brookings Institution Press, Washington, DC.
Lev, B. (2004), “Sharpening the intangibles edge”, Harvard Business Review, Vol. 82 No. 6, pp. 109-116.
Mashayekhi, Bita, Seyyedi Jalal, and Zargaran Yazd Hasti (2014). A study into the factors affecting intellectual capital disclosure in firms listed on the Tehran Stock Exchange, Accounting and Auditing Reviews, 4 (16) 121-95. (In Persian)
Mashayekhi, Bita; Birami Haniyeh; and Birami Hani (2014) Determining the value of intangible assets using artificial neural network. Accounting Experimental Research 4 (2) 238-223. (In Persian)
Mehrgan Nader and Salmani Younes (2014). Oil price fluctuations and sustainable economic growth: a case of Iran and Japan. Journal: Applied Economic Studies of Iran (Applied Economic Studies) Year: 2014, Volume: 3, Number: 10, Pages: 107-125. (In Persian)
Mohammad Reza Nikbakht, Zahra Dianati, Deilmi Mansour, and Momeni Hossein Ahmadi (2021). A multi-indicator evaluation model of intellectual capital. Researches on financial accounting and auditing, year 13, spring 2021, number 1 (consecutive 49). (In Persian)
Morariu, C.M. (2014), “Intellectual capital performance in the case of Romanian public companies”, Journal of Intellectual Capital, Vol. 15 No. 3, pp. 392-410.
Nadeem, M., Gan, C. and Nguyen, C. (2018), “The importance of intellectual capital for firm performance: evidence from Australia”, Australian Accounting Review, Vol. 28, p. 86.
Nazari, J.A. and Herremans, I.M. (2007), “Extended VAIC model: measuring intellectual capital components”, Journal of Intellectual Capital, Vol. 8 No. 4, pp. 595-609.
Nikkar Javad; Hammet Far Mahmoud; and Esami, Maryam (2018) The role of intangible asset investments in explaining the impact of financial health and agency problems on firms’ market value, firm management and financing 6 (1) 11-28(In Persian)
Nimtrakoon, S. (2015), "The relationship between intellectual capital, firms' market value, and financial performance. Empirical evidence from the ASEAN", Journal of Intellectual Capital, Vol. 16 No. 3, pp. 587-618.
Noravesh Iraj, Momeni Yansari Abolfazl, Safari Graili Mehdi (2015). Earnings quality and firm value: Evidence from Iranian companies. Financial accounting research, seventh year, number four, consecutive (26), winter 2015. (In Persian)
Ocak, M. and Fındık, D. (2019), “The impact of intangible assets and sub-components of intangible assets on sustainable growth and firm value: evidence from Turkish listed firms”, Sustainability, Vol. 2019 No. 11, p. 5359.
Olarewaju, O.M. and Msomi, T.S. (2021), “Intellectual capital and financial performance of South African development community’s general insurance companies”, Heliyon, Vol. 7 No. 2021, doi: 10.1016/j.heliyon.2021.e06712.
Osama El-Ansary & Hatem Fouad Hamza & Sheikh Zayed City, Egypt (2021) The underlying mechanisms of the relationships between corporate financial policies and firm value: flexibility and agency theory perspectives. Asia-Pacific Journal of Business Administration © Emerald Publishing Limited 1757-4323 DOI 10.1108/APJBA-08-2021-0420.
Ozcan, A. (2017). Analysis of value relevance of intangible assets under international financial reporting standards: evidence from Borsa Istanbul. Journal of Social Sciences Institute, 14 (40), 364- 377.
Petty, R. and Guthrie, J. (2000), “Intellectual capital literature review. Measurement, reporting and management”, Journal of Intellectual Capital, Vol. 1 No. 2, pp. 155-176.
Petty, R. and Guthrie, J. (2004), “Intellectual capital literature overview: measurement, reporting and management”, Journal of Intellectual Capital, Vol. 1 No. 2, pp. 155-176.
Riahi-Belkaoui, A. (2003), “Intellectual capital and firm performance of US multinational firms: a study of the resource-based and stakeholder views”, Journal of Intellectual Capital, Vol. 4 No. 2, pp. 215-226.
Saraf Fatemeh, Barzegar Qodratollah, and Mohammadi Mahsa (2018). Smoothing profits, social responsibility, and firm value. Journal: Accounting and Audit Research (Accounting Research) Year: 2017, Volume: 10, Number: 39, Pages: 189-210. (In Persian)
Sardo, F. and Serrasqueiro, Z. (2018), “Intellectual capital, growth opportunities, and financial performance in European firms. Dynamic panel data analysis”, Journal of Intellectual Capital, Vol. 19 No. 4, pp. 747-767.
Servaes, Henri.; Tamayo, Ane. (2019). ''The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness''. Management Science, Vol. 59, Issue 5, pp. 1045-1061.
Shamsi Somayyeh (2020). Intellectual Capital. Journal: Advertising and Sales Management (an approach in business management) Year: 2019, Volume: 1, Number: 2, Pages: 15-22. (In Persian)
Smriti, N. and Das, N. (2018), “The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI”, Journal of Intellectual Capital, Vol. 19 No. 5, pp. 935-964.
Tahat, Y.A., Ahmed, A.H. and Alhadab, M.M. (2018), “The impact of intangibles on firms’ financial and market performance: UK evidence”, Review of Quantitative Finance Account, Vol. 50, pp. 1147-1168.
Wang, J.C. (2008), “Investigating market value and intellectual capital for S&P 500”, Journal of Intellectual Capital, Vol. 9 No. 4, pp. 546-563.
Wang, X., Sadiq, R., Khan, T.M. and Wang, R. (2021), “Industry 4.0 and intellectual capital in the age of FinTech”, Technological Forecasting and Social Change, Vol. 166 No. 2021, doi: 10.1016/j. techfore.2021.120598.
Xu, J. and Sim, J.-W. (2018), “Characteristics of corporate R&D investment in emerging markets: evidence from manufacturing industry in China and South Korea”, Sustainability, Vol. 10, p. 3002.
Xu, J. and Wang, B. (2018), “Intellectual capital, financial performance and companies’ sustainable growth: evidence from the Korean manufacturing industry”, Sustainability, Vol. 10, p. 4651.
Yang, K.P., Chiao, Y.C. and Kuo, C.C. (2010), “The relationship between R&D investment and firm profitability under a three-stage sigmoid curve model: evidence from an emerging economy”, IEEE Transactions on Engineering Management, Vol. 57, pp. 103-117.
Zhu, Z. and Huang, F. (2012), “The effect of R&D investment on firms’ financial performance: evidence from the Chinese listed IT firms”, Modern Economy, Vol. 3, pp. 915-919.
