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The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey

Year 2016, Volume: 16 Issue: 3, 397 - 414, 01.07.2016

Abstract

The aim of this study is to determine the effect of intangible assets investment on firms’ financial performance. In this study, we analyze the impact of intangible assets on firm performance in Turkey by using Borsa İstanbul (BIST) National All Shares Index (XUTUM) database for the years 2005-2013. Intangibles are classified into three categories; innovative property, computerized information and database, and economic competence. Innovative property includes patents, licences, films, rights, and research and development activities. Computer software, information systems, computer programmes, and customer databases are in the second category. The third group emphasizes the economic impact of the intangibles such as advances given, agreements, and special costs. We apply fixed effects approach in this study to estimate the impact of each intangible component on firm performance. We find out a positive relationship between return on assets and intangible assets. As far as the intangible component that generates an improvement in firm performance is considered, innovation property-especially rights and licencescomes to the fore

References

  • Alpar, A. (2003) Uygulamalı Çok Değişkenli İstatistiksel Yöntemlere Giriş 1, Değiştirilmiş ve Genişletilmiş 2. Baskı Nobel Yayınevi.
  • Artz, K.W., Norman, P.M., Hatfield, D.E., Cardinal, L.B. (2010) ‘’A Longitudinal Study of the Impact of R&D, Patents, and Product Innovation on Firm Performance’’, Journal of Product Innovation Management, 27, pp.725-740.
  • Barnes, P., McClure, A. (2009) ‘’Investment in Intangible Assets and Australia’s Productivity Growth’’, Productivity Commission Staff Working Paper, Canberra, pp.1-216.
  • Berzkalne, I., Zelgalve, E. (2014) ‘’Intellectual Capital and Company Value’’, Procedia-Social and Behavioral Sciences, 110, pp.887-896.
  • Bharadvaj, A.S., Bharadvaj, S.G., Konsynski, B.R. (1999) ‘’Information Technology Effects on Firm Performances as Measured by Tobin’s q’’, Management Science, Vol.45, No.6, pp.1008-1024.
  • Brookings,A. (1996) Intellectual Capital, International Thomson Business Press, UK.
  • Bontis, N. (1998) ‘’Intellectual Capital: An Exploratory Study That Develops Measures and Models’’, Management Decision, 36/2, pp.63-76.
  • Borsa İstanbul, (http://www.borsaistanbul.com/ yatirimcilar/mali-tablolar-arsiv)
  • Brynjolfsson, E., Hitt, L.M, Yang, S. (2000) ‘’Intangible Assets: How the Interaction of Computers and Organizational Structure Affects Stock Market Valuations’’, MIT Working Paper, No.138, pp.1-48.
  • Chen, M.C., Chen, S.J., Hwang, Y. (2005) ‘’An Empirical Investigation of the Relationship Between Intellectual Capital and Firm’s Market Value and Financial Performance’’, Journal of Intellectual Capital, Vol.6, No.2, pp.159-176.
  • Corrado, C. Hulten, C., Sichel, D. (2004) “Measuring Capital and Technology: An Expanded Framework”, Finance and Economic Discussion Series No. 2004- 65, Board of Governors of the Federal System, U.S, pp.1-51, http://www.federalreserve.gov/pubs/ feds/2004/200465/200465pap.pdf, (18.03.2015).
  • Corrado, C. Hulten, C., Sichel, D. (2005) Measuring Capital and Technology, University of Chicago Press, pp.1-51.
  • Corrado,C. Hulten, C., Sichel, D. (2006) “Intangible Investment and Economic Growth”, Finance and Economics Discussion Series, Divisions of Research ve Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C, pp.1-48, http://www.federalreserve. gov/pubs/feds/2006/200624/200624pap.pdf, (18.03.2015).
  • Corrado,C. Hulten, C., Sichel, D. (2009) “Intangible Investment and US Economic Growth”, The Review of Income and Wealth, Vol.55, No.3, pp.661-685.
  • Ernst, H. (2001) ‘’Patent Applications and Subsequent Changes of Performance: Evidence from Time-Series Cross-Section Analyses on the Firm Level’’, Research Policy, Vol. 30, No. 1, pp. 143-157.
  • Flash Eurobarometer 369. (2013) Investing in Intangibles: Economic Assets and Innovation Drivers for Growth, European Commission, Flash Eurobarometer 369, pp.1-193.
  • Frier, S., Williams, S.M.(2003) ‘’Intellectual Capital and Traditional Measures of Corporate Performance’’, Journal of Intellectual Capital, Vol.4,Iss.3,pp.348-360.
  • Gamayuni, R.R. (2015) ‘’The Effect of Intangible Assets, Financial Performance and Financial Policies on The Firm Value’’, International Journal of Scientific&Technology Research, Vol.4, No.1, pp.202- 212.
  • Gan, K., Saleh, Z. (2008) ‘’Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence’’, Asian Journal of Business and Accounting, 1(1), pp.113-130.
  • Ghapar, F., Brooks, R., Smyth, R. (2013) ‘’The Impact of Patenting Activity on the Financial Performance of Malaysian Firms’’, Monash University, Department of Economics Discussion Paper 22/13, pp.1-24.
  • Griffith, W.E., Jensen, P.H., Webster, E. (2005) ‘The Effect on Firm Profits of the Stock of Intellectual Property Rights’’, Intellectual Property Research Institute of Australia, Working Paper No. 05/05. pp.1.24.
  • Hall, R. (1992) ‘’The Strategic Analysis of Intangible Resources’’, Strategic Management Journal, Vol.13, Iss.2, pp.135-144.
  • Hendriksen, E.S., van Breda, M.F. (1992) Accounting Theory, Irwin, Fifth Edition.
  • Kamuyu Aydınlatma Platformu, (http://kap.gov.tr/en/ search/detailed-search.aspx)
  • Krasnikov, A., Mishra, S., Orozco, D. (2009) ‘’Evaluating the Financial Impact of Branding Using Trademarks: A Framework and Empirical Evidence’’, Journal of Marketing, Vol.73, pp.154-166.
  • Lev, B. (2000) Intangibles: management, measurement, and reporting. Washington DC:Brookings Institution Press.
  • Li, D.Q., Wu, X.B. (2004) Empirical Study on the Linkage of Intellectual Capital and Firm Performance, Proceedings of Engineering Management Conference, 2, pp.515-519.
  • Machlup, F. (1962) The Production and Distribution of Knowledge in the United States, Princeton University Press.
  • Maditinos,D., Chatzoudes, D., Tsairidis,C., Theioru, G. (2011) ‘’The Impact of the Intellectual Capital on Firms’ Market Value and Financial Performance’’, Journal of Intellectual Capital, Vol.12, No.1, pp.132-151.
  • Mooney, K. (2008) The Essential Accounting Dictionary, Sphinx Publishing.
  • OECD ( 2013) Supporting Investment in Knowledge Capital, Growth and Innovation, pp.1-360.
  • Tatoğlu, F.Y.(2013) Panel Veri Ekonometrisi. Beta Yayınevi. İstanbul.
  • TMS 38, Maddi Olmayan Varlıklar, Kamu Gözetim Kurumu, Muhasebe ve Denetim Standartları Kurumu, s.1-23.
  • Siegel, J. G., Shim, J.K. (2000) Dictionary of Accounting Terms, Barron’s Education Series Inc. Third Edition.
  • Stewart, T.A. (1997) Intellectual Capital: The New Wealth of Organizations.Doubleday Publishing.
  • Wang, W.Y, Chang, C. (2005) ‘’Intellectual Capital and Performance in Causal Models’’, Journal of Intellectual Capital, Vol.6, No.2, pp.222-236.
  • Villalonga, B. (2004) ‘’Intangible Resources, Tobin’s q, and Sustainability of Performance Differences’’, Journal of Economic Behavior&Organization, Vol.54, pp.205-230.
  • Zéghal, D., Maaloul, A. (2010) ‘’Analysing Value Added as an Indicator of Intellectual Capital and Its Consequences on Company Performance’’, Journal of Intellectual Capital, Vol.11, No.1, pp.39-60.

Türkiye’de Maddi Olmayan Varlık Yatırımlarının İşletmelerin Finansal Performansı Üzerine Etkisi

Year 2016, Volume: 16 Issue: 3, 397 - 414, 01.07.2016

Abstract

Bu çalışmanın amacı maddi olmayan varlıkların işletmelerin finansal performansı üzerindeki etkisini belirlemektir. Borsa İstanbul (BIST) Ulusal Tüm Endeksi’nde (XUTUM) yer alan işletmelere ait maddi olmayan varlıkların gelişimi 2005-2013 yılları esas alınarak ele alınmış ve maddi olmayan varlıklar; yenilikçi varlık, bilgisayarla işlenmiş enformasyon ve ekonomik yetkinlik olmak üzere sınıflandırılmıştır. Yenilikçi varlık kalemi patent ve lisans gibi firmanın teknolojik yenilik faaliyetlerini içermekte iken, bilgisayarla işlenmiş enformasyon veri tabanları ve yazılım gibi varlıklara işaret etmektedir. Ekonomik yetkinlik ise farklı olarak işletmenin örgütsel faaliyetlerini ön plana çıkarmakta ve avans, marka ve müşteri listeleri gibi kalemlere yer vermektedir. Bu sınıflandırmaların işletmelerin finansal performansı üzerindeki etkisi sabit etkiler yöntemi kullanılarak incelenmiştir. Çalışmanın sonuçlarına göre maddi olmayan varlık kalemleri işletmelerin aktif kârlılığını (ROA) artırmada etkilidir. Maddi olmayan varlık kalemlerinden hangisinin kârlılığı artırıcı yönde etkili olduğu incelendiğinde ise büyük oranda kullanım hakları ve lisanslar kalemlerinden oluşan yenilikçi varlık ayrımı dikkat çekmektedir

References

  • Alpar, A. (2003) Uygulamalı Çok Değişkenli İstatistiksel Yöntemlere Giriş 1, Değiştirilmiş ve Genişletilmiş 2. Baskı Nobel Yayınevi.
  • Artz, K.W., Norman, P.M., Hatfield, D.E., Cardinal, L.B. (2010) ‘’A Longitudinal Study of the Impact of R&D, Patents, and Product Innovation on Firm Performance’’, Journal of Product Innovation Management, 27, pp.725-740.
  • Barnes, P., McClure, A. (2009) ‘’Investment in Intangible Assets and Australia’s Productivity Growth’’, Productivity Commission Staff Working Paper, Canberra, pp.1-216.
  • Berzkalne, I., Zelgalve, E. (2014) ‘’Intellectual Capital and Company Value’’, Procedia-Social and Behavioral Sciences, 110, pp.887-896.
  • Bharadvaj, A.S., Bharadvaj, S.G., Konsynski, B.R. (1999) ‘’Information Technology Effects on Firm Performances as Measured by Tobin’s q’’, Management Science, Vol.45, No.6, pp.1008-1024.
  • Brookings,A. (1996) Intellectual Capital, International Thomson Business Press, UK.
  • Bontis, N. (1998) ‘’Intellectual Capital: An Exploratory Study That Develops Measures and Models’’, Management Decision, 36/2, pp.63-76.
  • Borsa İstanbul, (http://www.borsaistanbul.com/ yatirimcilar/mali-tablolar-arsiv)
  • Brynjolfsson, E., Hitt, L.M, Yang, S. (2000) ‘’Intangible Assets: How the Interaction of Computers and Organizational Structure Affects Stock Market Valuations’’, MIT Working Paper, No.138, pp.1-48.
  • Chen, M.C., Chen, S.J., Hwang, Y. (2005) ‘’An Empirical Investigation of the Relationship Between Intellectual Capital and Firm’s Market Value and Financial Performance’’, Journal of Intellectual Capital, Vol.6, No.2, pp.159-176.
  • Corrado, C. Hulten, C., Sichel, D. (2004) “Measuring Capital and Technology: An Expanded Framework”, Finance and Economic Discussion Series No. 2004- 65, Board of Governors of the Federal System, U.S, pp.1-51, http://www.federalreserve.gov/pubs/ feds/2004/200465/200465pap.pdf, (18.03.2015).
  • Corrado, C. Hulten, C., Sichel, D. (2005) Measuring Capital and Technology, University of Chicago Press, pp.1-51.
  • Corrado,C. Hulten, C., Sichel, D. (2006) “Intangible Investment and Economic Growth”, Finance and Economics Discussion Series, Divisions of Research ve Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C, pp.1-48, http://www.federalreserve. gov/pubs/feds/2006/200624/200624pap.pdf, (18.03.2015).
  • Corrado,C. Hulten, C., Sichel, D. (2009) “Intangible Investment and US Economic Growth”, The Review of Income and Wealth, Vol.55, No.3, pp.661-685.
  • Ernst, H. (2001) ‘’Patent Applications and Subsequent Changes of Performance: Evidence from Time-Series Cross-Section Analyses on the Firm Level’’, Research Policy, Vol. 30, No. 1, pp. 143-157.
  • Flash Eurobarometer 369. (2013) Investing in Intangibles: Economic Assets and Innovation Drivers for Growth, European Commission, Flash Eurobarometer 369, pp.1-193.
  • Frier, S., Williams, S.M.(2003) ‘’Intellectual Capital and Traditional Measures of Corporate Performance’’, Journal of Intellectual Capital, Vol.4,Iss.3,pp.348-360.
  • Gamayuni, R.R. (2015) ‘’The Effect of Intangible Assets, Financial Performance and Financial Policies on The Firm Value’’, International Journal of Scientific&Technology Research, Vol.4, No.1, pp.202- 212.
  • Gan, K., Saleh, Z. (2008) ‘’Intellectual Capital and Corporate Performance of Technology-Intensive Companies: Malaysia Evidence’’, Asian Journal of Business and Accounting, 1(1), pp.113-130.
  • Ghapar, F., Brooks, R., Smyth, R. (2013) ‘’The Impact of Patenting Activity on the Financial Performance of Malaysian Firms’’, Monash University, Department of Economics Discussion Paper 22/13, pp.1-24.
  • Griffith, W.E., Jensen, P.H., Webster, E. (2005) ‘The Effect on Firm Profits of the Stock of Intellectual Property Rights’’, Intellectual Property Research Institute of Australia, Working Paper No. 05/05. pp.1.24.
  • Hall, R. (1992) ‘’The Strategic Analysis of Intangible Resources’’, Strategic Management Journal, Vol.13, Iss.2, pp.135-144.
  • Hendriksen, E.S., van Breda, M.F. (1992) Accounting Theory, Irwin, Fifth Edition.
  • Kamuyu Aydınlatma Platformu, (http://kap.gov.tr/en/ search/detailed-search.aspx)
  • Krasnikov, A., Mishra, S., Orozco, D. (2009) ‘’Evaluating the Financial Impact of Branding Using Trademarks: A Framework and Empirical Evidence’’, Journal of Marketing, Vol.73, pp.154-166.
  • Lev, B. (2000) Intangibles: management, measurement, and reporting. Washington DC:Brookings Institution Press.
  • Li, D.Q., Wu, X.B. (2004) Empirical Study on the Linkage of Intellectual Capital and Firm Performance, Proceedings of Engineering Management Conference, 2, pp.515-519.
  • Machlup, F. (1962) The Production and Distribution of Knowledge in the United States, Princeton University Press.
  • Maditinos,D., Chatzoudes, D., Tsairidis,C., Theioru, G. (2011) ‘’The Impact of the Intellectual Capital on Firms’ Market Value and Financial Performance’’, Journal of Intellectual Capital, Vol.12, No.1, pp.132-151.
  • Mooney, K. (2008) The Essential Accounting Dictionary, Sphinx Publishing.
  • OECD ( 2013) Supporting Investment in Knowledge Capital, Growth and Innovation, pp.1-360.
  • Tatoğlu, F.Y.(2013) Panel Veri Ekonometrisi. Beta Yayınevi. İstanbul.
  • TMS 38, Maddi Olmayan Varlıklar, Kamu Gözetim Kurumu, Muhasebe ve Denetim Standartları Kurumu, s.1-23.
  • Siegel, J. G., Shim, J.K. (2000) Dictionary of Accounting Terms, Barron’s Education Series Inc. Third Edition.
  • Stewart, T.A. (1997) Intellectual Capital: The New Wealth of Organizations.Doubleday Publishing.
  • Wang, W.Y, Chang, C. (2005) ‘’Intellectual Capital and Performance in Causal Models’’, Journal of Intellectual Capital, Vol.6, No.2, pp.222-236.
  • Villalonga, B. (2004) ‘’Intangible Resources, Tobin’s q, and Sustainability of Performance Differences’’, Journal of Economic Behavior&Organization, Vol.54, pp.205-230.
  • Zéghal, D., Maaloul, A. (2010) ‘’Analysing Value Added as an Indicator of Intellectual Capital and Its Consequences on Company Performance’’, Journal of Intellectual Capital, Vol.11, No.1, pp.39-60.
There are 38 citations in total.

Details

Other ID JA59SF96TB
Journal Section Research Article
Authors

Derya Fındık This is me

Murat Ocak

Publication Date July 1, 2016
Published in Issue Year 2016 Volume: 16 Issue: 3

Cite

APA Fındık, D., & Ocak, M. (2016). The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey. Ege Academic Review, 16(3), 397-414.
AMA Fındık D, Ocak M. The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey. ear. July 2016;16(3):397-414.
Chicago Fındık, Derya, and Murat Ocak. “The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey”. Ege Academic Review 16, no. 3 (July 2016): 397-414.
EndNote Fındık D, Ocak M (July 1, 2016) The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey. Ege Academic Review 16 3 397–414.
IEEE D. Fındık and M. Ocak, “The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey”, ear, vol. 16, no. 3, pp. 397–414, 2016.
ISNAD Fındık, Derya - Ocak, Murat. “The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey”. Ege Academic Review 16/3 (July 2016), 397-414.
JAMA Fındık D, Ocak M. The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey. ear. 2016;16:397–414.
MLA Fındık, Derya and Murat Ocak. “The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey”. Ege Academic Review, vol. 16, no. 3, 2016, pp. 397-14.
Vancouver Fındık D, Ocak M. The Effect of Intangible Assets Investments on Firms’ Financial Performance in Turkey. ear. 2016;16(3):397-414.