Intangible assets and their effects on business performance: an analysis of Colombian companies Activos intangibles y sus efectos en el desempeño empresarial: un análisis para empresas colombianas Academic Article in Scopus uri icon

abstract

  • Intangible assets (IAs) are fundamental for the creation of firm value. However, the literature is inconclusive regarding the relationship between IAs and profitability. This paper uses financial data from Colombian firms from 2005 to 2015 to determine if this relationship exists. Thirty dynamic panel models have been used to see whether IAs are related to Return on Equity, Return on Assets, Earnings Before Interest and Taxes, Earnings Before Interest, Taxes, Depreciation, and Amortization, Gross margin, and Net margin. The results, despite a limited sample size and missing variables, are related to the literature in that they signal the negative relationship between IAs and profitability. Thus, the capitalized value of IAs seems to negatively affect Colombian firms' performance in the short and long term. © Universidad de Santiago de Compostela.

publication date

  • June 1, 2024