Impact of Intangible Assets on Profitability of Hong Kong Listed Information Technology Companies

Hanran Li () and Wenshu Wang ()

Business and Economic Research, 2014, vol. 4, issue 2, 98-113

Abstract: The objective of our study is to find out the relationship between intangible assets and financial performance of the listed technology firms in Hong Kong exchange market. Through reviewing the listed firms¡¯ annual reports for a five year period (from 2008 to 2012), we have collected data of three kinds of intangible assets, which are research and development cost, employee benefit expense, and sales training. Meanwhile, we have used total assets and net profit as control variables in analyzing the relationship between intangible assets and financial performance, represented by return on assets (ROA) of firms. Using lagged R&D expenditure as instrumental variable; our results suggested that research and development investment and sales training are beneficial to firms¡¯ financial performance while employee benefit expense is not.

Keywords: Intangible Assets; Research and Development; Sales Training; Return on Assets; Net Profit; Total Assets (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.macrothink.org/journal/index.php/ber/article/view/6009/5104 (application/pdf)
http://www.macrothink.org/journal/index.php/ber/article/view/6009 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mth:ber888:v:4:y:2014:i:2:p:98-113

Access Statistics for this article

Business and Economic Research is currently edited by Daisy Young

More articles in Business and Economic Research from Macrothink Institute
Bibliographic data for series maintained by Technical Support Office ( this e-mail address is bad, please contact ).