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Innovation is widely considered one of the most important drivers for firm growth in the contemporary economy. However, the ‘elusive’ as well as heterogeneous nature of innovation has generated a lively debate among scholars with regards to the best metrics to capture its features and effects. Often, this has led to a reliance on R&D and/or patent-...
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... 1 shows the sector composition of the two samples (for phase 1 and 2): the most represented sector is the technological one, which constitutes 26.98% of the sample. In terms of country of origin (Table 2), 17.88% of companies have their headquarters in the UK, followed by France with 16.55%. Table 3 shows the size distribution of the different firms. ...Similar publications
Rational household asset allocation is crucial for the accumulation of household wealth. However, there is still a widespread phenomenon of limited participation among households. This paper aims to explore the impact of the investment expectation gap on households’ risky financial asset investment. Utilizing data from the China Household Finance S...
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... The challenge in classifying intangible assets is also caused by the fact that some intangible assets have a general purpose, such as a trademark, while others are introduced for a specific purpose and are specific to a particular situation, such as a patented machine that solves a particular production problem [14]. IFRS refer to three main aspects when defining intangible assets: identification, control, and future benefits [1]. ...
Relevance. The research relevance is determined by the rapid development and introduction of intangible assets in enterprises causing issues of their proper accounting and subsequent audit.Purpose. The research aims to analyse the accounting of intangible assets of the enterprise and to consider the peculiarities of their audit.Methodology. The analysis method was used to establish that problems in accounting for intangible assets arise at each of its stages, which is ultimately reflected in the final stage of work with intangible assets � audit problems. The deduction method was used to establish that the double-entry accounting system significantly limits the completeness of information on intangible assets.Results. According to the results of the research, as of 2023, the enterprises of Azerbaijan apply an international approach in the accounting of intangible assets. In addition to characteristic features of intangible assets and their nature, inaccuracies in international standards concerning intangible assets are the root cause of incorrect accounting and create many problems in their accounting and further audit. These problems impede stakeholder information and reduce confidence in financial reporting and subsequent decisions to develop the company�s competitive advantage in the market.Conclusions. The practical significance of this study is determined the findings of the study help businesses to avoid the most common errors in accounting for intangible assets, improve their management efficiency, minimise risks and make informed decisions to achieve long-term sustainability and success in the market.
... Estos resultados convergen con los hallados por [15], quien encontró 50% baja, 30% media y 20% alta, esto posiblemente obedece a la naturaleza del negocio, hay negocios que requieren de inversión intangible (como marca) y del tamaño del mercado (local, regional, nacional, internacional). A mayor cobertura se requiere de mayor cantidad de intangibles, en el caso del presente estudio, el negocio es de alcance regional centrado en un distrito donde se concentra el mercado de salud, por ello, no requiere mucha inversión intangible más que la necesaria. ...
... Specifically, we use popular profitability ratios, financial ratios (leverage and stock market ratios), growth ratios (such as investment in total assets, employment growth, foreign sales etc.). Where applicable, the logarithmic form of variables is use (except in the case of ratios) as commonly done by many researchers (Claessense, Djankov, & Hang, 2000;Bagna, Ramusino, & Denicolai, 2021). ...
This work applies popular machine-learning tree-based methods attempting to identify factors that affect company performance at the aftermath of an economic crisis. The methods are used to aid the revelation of information that may be linked to company performance and the effects of economic distress to publicly listed companies. Economic data and indicators from France are used, as recorded during the period of a recent economic crisis (2008-20012). Firms are categorized according to the change in their sales performance in 2017 as compared to that before the crisis. The models examine firm findings during the crisis period (between 2008 and 2012) and attempt to relate them to the category assigned for each firm in 2017, revealing some connections between the results in these two periods. Findings aim to identify economic key-characteristics that may relate to improved future performance and may provide insight on the decision-making process at firm level, in terms of debt accumulation, investment, exporting activity and others.
... Of the many benefits that the owner of the patent can obtain, of course, the United States and companies that own patents will be increasingly recognized by the public and are considered capable of competing with other companies because they have the highest decision support system patent documents compared to other countries or companies [39]. ...
... Accounting for goodwill is an interesting research topic for academics and a relevant issue for preparers, investors, professionals, regulators, and standard setters. Goodwill, like other intangibles (Bagna, Cotta Ramusino, & Denicolai, 2021) represents a significant and growing portion of investments at listed firms because of mergers and acquisitions (M&As), which give acquiring firms the possibility, in business combinations, to recognize goodwill and record it under their assets. 2 The monitoring and adjustment of the goodwill carrying amount over time is at present disciplined, at the international level, by the impairment-only approach introduced by the International Accounting Standards Board (IASB) in 2004 3 (and adopted in 2005), after a similar decision by the U.S. Financial Accounting Standards Board (FASB) in 2001. ...
In March 2020, the IASB issued a discussion paper – ‘Business Combinations – Disclosures, Goodwill and Impairment’ – which discussed, inter alia, whether to introduce a sort of counterreformation of IAS 36 that might lead to the reintroduction of goodwill amortization. Among other things, the IASB, leveraging key findings from academic research, questioned a) the disclosure provided by entities applying IFRS 3 requirements and b) the timing of impairment write-downs and their overal¹l magnitude.
The main goal of this study, focusing on a large sample of European listed companies since the adoption of IAS in 2005, is to test the value relevance of goodwill under the current accounting framework and the alternative hypothesis of an amortization regime.
Our findings show that the information provided by listed companies to market investors under the current accounting regime (verification at least annually of the recoverability of the value of the goodwill carrying amount through the impairment test) – the level of goodwill before and post impairment, as well as goodwill write downs – is value relevant and contributes to explain the level of the market to tangible book value multiple. On the contrary, simulating the alternative accounting scenario of goodwill amortization, we found that the information conveyed to market investor would not be value relevant, with the amortization itself added back to the multiple. The results support the current accounting framework and indicate that the best way to improve goodwill accounting is by enforcing present rules.
This study aims to provide a multidimensional contribution to the current debate within the IASB, leveraging the largest database in Europe.
... Measures such as employment growth, assets, sales growth, or profits (expressed as ratios or absolute values) are highlighted as determinants of performance and/or growth. Many researchers are used to focusing specifically on profitability in terms of net revenues, EBIT and EBITDA, while others measure profitability with several indicators such as Return on Sales (ROS) (see for example [7]), Return On Equity (ROE) [8], and Return On Invested Capital (ROIC) [9]. The most commonly used measure of performance is Return on Assets (ROA), and has been included in various papers [10][11][12] and more recently [13][14][15][16] and for European companies [8,[17][18][19][20][21]. ...
... Because of all the above, we chose a more representative indicator of performance: sales growth. It is more suitable for our analysis, as it indicates economic performance and profitability (in terms of total revenues and net profits) and as such, has been included in many research papers [9,[22][23][24][25][26] and is considered as a reliable measure of performance in firm level [27]. Furthermore, the change in sales volume may imply growth as well, because increased sales usually require higher investment in total asset (fixed and current assets), they result in a larger market share and a higher turnover and, because of that, they imply growth and dynamism [13,28,29]. ...
... More specifically, we used the logarithmic form of sales growth, a measure also used by [13] in their analysis on the impact of the financial crisis on the performance of Asian publicly listed firms. In their research, [9] also used the natural logarithmic difference in sales volume to analyze the effects of patents and intangible assets in the growth and profitability of European companies. In our dataset, the first value of sales growth is the percentage difference in sales volume between 2008 and 2009. ...
In this paper, we analyzed data from publicly listed firms from selected countries of the eurozone between 2008 and 2016, a period of high volatility in the global economy and high uncertainty in financial markets. Economic indicators, such as sales volume, debt accumulation, internationalization, and innovative activity, were combined with firm size and ownership structure to examine their impact on economic performance. We first performed a panel data analysis to associate the economic and non-economic company-specific characteristics with performance and growth, while also examining the possible differences between countries. In the second part of the paper, we focused on ownership structure, an issue of great importance in the literature on business and economics. Through structural equation modeling (SEM), we attempted to shape the profiles of closely held companies, and their impact on performance. Our findings confirmed that significant differences exist not only between firms but also between countries relative to performance indicators; however, a common trend was found relative to debt, size, and ownership. Our findings also revealed a more conservative approach of closely held companies relative to long-term commitment and risky investment projects, compared to their non-closely held counterparts.
... Innovation and innovation capabilities are the central entities of dynamic capabilities (Strønen et al., 2017). Thus, according to this understanding, innovation is defined as the most important driver of a company's growth (Bagna et al., 2021). In addition, the basic principle of a resource-based approach is that competitive advantage relies on the ability of enterprises to develop and implement valuable, rare, unique and irreplaceable resources and capabilities (Thornhill & Gellatly, 2005). ...
Small and medium-sized enterprises (SMEs) are crucial for any national economy through their vital contribution to sustainable growth, economic development and employment. The digital revolution, globalization, and the latest impact and pressure caused by the Covid-19 pandemic have posed even greater barriers and challenges for these enterprises. In order for small and medium-sized enterprises to respond to the new challenges, to participate in the market and gain a competitive position, they need to be different, and this can only be accomplished through an innovative way of working. To foster innovation, strategic changes are needed in the operation of the SMEs, with a focus on the people involved, the ways and methods used in the organizational environment, and the desired innovation results. Connecting to the external environment (networking) and/or using an open innovation system are also fundamental to the success of the enterprise innovation process. Innovative capacity of the businesses is a function of the organization’s culture, resources and networks. The main purpose of this paper is to identify certain strategic factors that contribute to creating an innovative organizational environment and fostering innovation, i.e. increasing the innovation capacity of SMEs in Pelagonia region in North Macedonia.
... Innovation and innovation capabilities are the central entities of dynamic capabilities (Strønen et al., 2017). Thus, according to this understanding, innovation is defined as the most important driver of a company's growth (Bagna et al., 2021). In addition, the basic principle of a resource-based approach is that competitive advantage relies on the ability of enterprises to develop and implement valuable, rare, unique and irreplaceable resources and capabilities (Thornhill & Gellatly, 2005). ...
The aim of this research is to identify a correlation link between Greenfield FDI inflows and GDP growth rate in Western Balkan countries compared to the Visegrad States in order to give relevant implications towards sustainable economic development in less developed countries of Western Balkans. The authors present descriptive analysis together with correlation analysis for the Western Balkans and the Visegrad States in the time period 2003-2020. This research analyzes data in regard to the structural break of the Global Financial Crisis and pandemic of corona virus. Government recommendations are directed in further improvements in the quality of public institutions, incentive measures and investment environment in order to attract favorable greenfield FDI investments and accelerate real convergence towards developed European economies.
... Innovation and innovation capabilities are the central entities of dynamic capabilities (Strønen et al., 2017). Thus, according to this understanding, innovation is defined as the most important driver of a company's growth (Bagna et al., 2021). In addition, the basic principle of a resource-based approach is that competitive advantage relies on the ability of enterprises to develop and implement valuable, rare, unique and irreplaceable resources and capabilities (Thornhill & Gellatly, 2005). ...
e of the key segments of a company's strategic management is managing its growth. Growth needs to be sustainable so that companies can benefit strategically from it. The rate of sustainable growth represents the maximum rate of increase in sales of the company without the need for additional financial resources. The paper will research the key determinants of the sustainable growth rate of 81 companies operating in the Balkan countries in the period from 2014 to 2020. The appropriate statistical methods will research the impact of liquidity, profitability, indebtedness, firm size and asset efficiency on a company's sustainable growth rate. The obtained results should provide guidelines for the growth rate of the observed companies in the long run, considering that this is an indicator that leads to the growth of the company's value and meeting strategic goals. Also, the obtained results should indicate how it is possible to ensure long-term profitable and sustainable company growth in a rapidly changing economic, political and competitive environment, and what internal and external incentives are needed to further increase growth potential.
... Innovation and innovation capabilities are the central entities of dynamic capabilities (Strønen et al., 2017). Thus, according to this understanding, innovation is defined as the most important driver of a company's growth (Bagna et al., 2021). In addition, the basic principle of a resource-based approach is that competitive advantage relies on the ability of enterprises to develop and implement valuable, rare, unique and irreplaceable resources and capabilities (Thornhill & Gellatly, 2005). ...
Modern conditions characterized by the fourth industrial revolution emphasized the crucial role of intangible assets in the success of companies. Tangible and intangible assets of companies within cities make a significant part of the development of competitive knowledge-based cities. However, development trends in recent decades have shifted the focus from tangible assets to intangible assets such as knowledge, innovation and intellectual property. In modern conditions, intangible assets are becoming an important strategic resource necessary for the improvement of the competitive advantage of companies within any industry. There is evidence of the influence of intangible assets on improving company performance and creating corporate value. The development of the knowledge-based economy has additionally encouraged companies to efficiently use soft capital such as human capital and knowledge since economic development in modern conditions is driven by soft capital. Therefore, the aim of this paper is to evaluate the efficiency of intangible asset management within the high-tech industry companies of ten European cities (Amsterdam, Barcelona, Berlin, Brussels, Dublin, Lisbon, London, Oslo, Paris and Zurich). The sample consists of data for 2775 high-tech companies within stated cities related to the number of patents, the number of trademarks, annual fixed asset growth rate, annual intangible asset growth rate, share of intangible asset in total asset, annual current asset growth rate and current ratio for the last year available in the Amadeus database. Efficiency evaluation was performed by creating a composite index using the Benefit of Doubt approach. The results of the efficiency analysis indicate that a large part of the companies in the sample achieves relatively low levels of efficiency. Differences in average efficiency between companies in the analysed cities were assessed using one-way ANOVA. The results indicate that the average efficiency of high-tech companies operating in Dublin is significantly better than the average efficiency of high-tech companies in other analysed European cities. In addition, high-tech companies operating in Berlin are, on average, more efficient than high-tech companies operating in Paris and London. There are no statistically significant differences between the average efficiencies of high-tech companies in other analysed European cities.
