This article details a proposed platform for the selection and clas-sification of Research, Development and Innovation (RD & I) pro-jects, in the context of the Energy Industry in Brazil, considering ...gains in terms of intangible assets for a given company. For this, the platform consists of a model structured in two parts. The first part (Part I) identifies the project's contribution estimated for a company's intangible assets portfolio, via trial project alignment with strategic demands elected by the company. In Part II, the platform aims to determine, in addition to the metrics traditio-nally used, e.g. NPV and IRR, the project's maturity level, through a designed classification typology, which is based on the value of the call option and NPV of the project cash flow. Our expectation is that the adoption of the proposed platform collaborates for the adoption of active management of RD & I projects' portfolio.
Multinational enterprises (MNEs) in the information technology and business process outsourcing (IT/BPO) sector are at the forefront of technological disruption and change, which necessitates firms ...to remain agile and continuously innovate their business models. This paper investigates the investments made by IT/BPO MNEs in intangible assets and the role of encouraging management and leadership practices that supports the core tenets of strategic agility at a time when the global financial crisis (GFC) occurred. Using a two phase mixed methodology, that tests three key a priori themes, first, we examine to what extent the investments in intangible assets led to the development of strategic agility (SA), which in turn led to greater technological performance over the longitudinal period 2007–2017. Second, we further shed light on the positive relationship between intangible assets and strategic agility by identifying which Indian IT/BPO groups (based on location and firm age) show greater technological performance and, third, how such groups translate deliberate investments in intangible assets that lead to SA and greater technological performance, as compared to other groups over time. Overall, our findings provide evidence that IT/BPO MNEs' past sustained investments in intangible assets paved the way for the IT/BPO MNEs to respond in an agile manner when the GFC hit.
ABSTRACT
In this paper, we investigate the stock market valuation of the intangible asset created by selling, general, and administrative (SG&A) expenditure. Although GAAP requires immediate ...expensing of SG&A, prior studies show that current SG&A generates future economic benefits, suggesting that it creates an intangible asset. We find that the contemporaneous stock market seems to recognize some of the intangible asset value implicit in SG&A. Positive subsequent returns can be earned in firms with a high SG&A intangible asset value. These excess returns are more likely due to investor mispricing than to risk compensation. Furthermore, we find that both analysts' long-term growth forecast revisions and one-year-ahead forecast errors are positively associated with the future value created by current SG&A, indicating that analysts partially incorporate the intangible SG&A asset value into their forecasts. Overall, the evidence suggests that the capital market only partially recognizes the intangible asset value created by SG&A expenditure.
This study aims to explore the nexus between CEO-Chair duality, leverage, and investments in intangible assets within the realm of energy companies listed in the European Union (EU) using ...multi-theoretical lenses. Robust regression is employed to analyse the panel dataset. Energy companies listed in the European Union are analysed for the period 2011-2020. Findings reveal that leverage and CEO-Chair duality exert a positive influence on investments in intangible assets. By separating the roles of CEO and Chairman and adopting appropriate leverage levels, firms can enhance their ability to invest in intangible assets, fostering innovation and improving their competitive position in the market. The results offer valuable insights for academic researchers, practitioners in the electricity and gas industry and investors, aiding in informed decision-making and resource allocation strategies.
The development of Government Accounting in Indonesia is lacking in responding to the demands of current developments. The output produced by government accounting in Indonesia cannot be said to be ...accurate and does not match what it should be, so it cannot be used for decision making. The issuance of Government Regulation no. 71 of 2010 concerning Government Accounting Standards replacing Government Regulation no. 24 of 2005 where this new regulation requires central and regional governments to use accrual-based accounting. Based on this Government Regulation, central and regional governments must use fully accrual-based accounting and not use cash-based accounting that leads to accruals. The aim of this research is to identify how accounting is treated for software at the One-Stop Integrated Services and Manpower Investment Service (PM PTSP and NAKER) based on SAP No. 14 regarding intangible assets. The research method is to use a qualitative method using a descriptive approach by collecting data in the form of observations, interviews and documentation. The results of the research prove that the accounting treatment of software in the Department of Investment, One-Stop Integrated Services and Labor located in Tanah Datar Regency where there is one software, namely SIPINTAR (Taland Datar Licensing Information System), for this SIPINTAR can be identified as an asset. In the form of the service and the acquisition costs for the SIPINTAR software, it meets the provisions of Government Accounting Standards.
Purpose
The competitive model has changed. In this context, society entered into an era in which intangible assets are the greatest assets of a company. However, some gaps and uncertainties are ...presented in the literature as to understand the value of a company based on knowledge intensive activities. The purpose of this paper is to analyze the methods of evaluation of intangible assets in the context of business, economic and strategic management.
Design/methodology/approach
This is a qualitative research. This research is characterized as descriptive, bibliographic, inductive.
Findings
The main results of this research can highlight the existence of valuation methods of intangible assets intended for specific industries, as public and/or private, that can be better aligned to the context of business; economic and/or strategic management.
Originality/value
It was found that intangible assets are a current topic and increasingly addressed in the literature.
Intangible assets are typically nonphysical assets used over the long-term. Intangible assets are often intellectual assets. Proper valuation and accounting of intangible assets are often ...problematic, due in large part to how intangible assets are handled. The difficulty assigning value stems from the uncertainty of their future benefits. Also, the useful life of an intangible asset can be either identifiable or non-identifiable. The purpose of the article is to analyze approaches to the recognition, classification and accounting of intangible assets in Ukraine and in the world, as well as to substantiate the priority areas for the improvement of methods for disclosure the information about intangible assets in financial statements. The regulatory legal framework for accounting of intangible assets in Ukraine and in the world was disclosed. It contains: National Accounting Standard # 8 “Intangible assets”, International accounting standard 38 “Intangible assets”, SFAS 142 “Goodwill and other intangible assets”. A critical comparison of classification approaches and recognition criteria for intangible assets as accounting objects was made. It was revealed that today there is a problem of incorrect display of intangible assets in financial statements. The so-called phenomenon of “hidden” intangible assets arose. Although some intangible assets belong to the company, but reporting standards do not allow them to be reflected in reporting forms – their value is shown on the balance sheet only if the company will be to sell or a merger should take place. It was proposed to introduce the following amendments to National Accounting Standard # 8 “Intangible assets”: a) to recognize intangible assets with a useful life of less than one year, provide an opportunity to recognize an asset as intangible without the presence of title documents, and introduce an element of current intangible assets; b) to supplement the classification of intangible assets with the article intangible assets at the development stage and allow enterprises to independently classify these assets into relevant groups.
Objective: This work seeks to identify which variables best explain the generation of value in creative economy companies that have high investment in intangible assets. The study focused on the ...creative economy sector of Porto Digital in the city of Recife, Pernambuco, Brazil.
Methodology: The methodology used was exploratory research. For the examination of the variables, the multivariate analysis was used with the application of exploratory factor analysis, and for confirmation, the Spearman correlation model. For data collection, a semi-structured questionnaire prepared in Google Forms was sent to the companies in the second half of July 2021. The responses were validated using Cronbach's Alpha, and the suitability for using factor analysis was measured using the KMO and Bartlett tests. All results were found and demonstrated using the IBM SPSS Statistics 26 software.
Results: The variables highlighted by the results were grouped into three groups and presented in an accounting statement model using the Resource-Based Theory definitions. Finally, the CEO of two of the most prominent Creative Economy companies in Pernambuco gave his opinion on these variables. These comments were placed in the financial statement explanatory note format. The results showed that 13 variables were classified into structural, relational, and human capital.
Study contributions: Creative economy companies essentially work using the ability to manage all their intangible resources. This article is the first to provide empirical evidence on the perceptions of managers of creative economy companies in Porto Digital do Recife about the importance and contributions of intangible assets to generate value in their businesses, as well as assess the organizational resilience of these companies in the context of the covid-19 pandemic.
Corporate culture: Evidence from the field Graham, John R.; Grennan, Jillian; Harvey, Campbell R. ...
Journal of financial economics,
November 2022, 2022-11-00, Letnik:
146, Številka:
2
Journal Article
Recenzirano
Odprti dostop
Ninety-two percent of the 1348 North American executives we survey believe that improving corporate culture would increase firm value. A striking 84% believe their company needs to improve its ...culture. But how can that be achieved? Our paper provides some guidance by documenting the following: executives’ views on what corporate culture is and how it operates, distinguishing between stated values and everyday norms; the extent to which culture is perceived to influence value creation (productivity, mergers), ethical choices (compliance, short-termism), and innovation (creativity, risk-taking); and a list of obstacles that can prevent culture from being where it should be (inattentive leaders, misaligned incentive compensation). Finally, we provide evidence that the executives’ survey responses are consistent with external data.
Environmental, social and governance (“ESG”) scores have been widely touted as indicators of share price resilience during the COVID‐19 crisis. Contrary to this conventional wisdom, we present robust ...evidence that once industry affiliation, market‐based measures of risk and accounting‐based measures of performance, financial position and intangibles investments have been controlled for, ESG offers no such positive explanatory power for returns during the COVID crisis. Specifically, ESG is insignificant in fully specified returns regressions for each of the Q1 2020 COVID market crisis period and for the full COVID year of 2020. By contrast, a measure of the firm's stock of investments in internally generated intangible assets is an economically and statistically significant positive determinant of returns during each of the Q1 market implosion and full 2020 COVID year periods. Our results are robust to alternative measures of returns, as well as for using Refinitiv, Refinitiv II and MSCI data to capture ESG performance. We conclude that ESG did not immunize stocks during the COVID‐19 crisis, but those investments in intangible assets did.
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