Empirical Evidence of Intangible Assets Improve the Financial Performance of Slovak ICT Companies

Serhii Lehenchuk, Tetiana Vakaliuk, Tetiana Vakaliuk, Tetiana Vakaliuk, Tetiana P. Nazarenko, Zuzana Kubaščíková, Zuzana Juhászová

2022

Abstract

In the conditions of the knowledge economy, the financial performance of high-tech enterprises largely depends on the efficiency of the processes of creating and using intangible assets. To increase it, it is necessary to build an effective intangible investment policy, which should be based on an understanding of the role of certain types of intangible assets in increasing financial performance. The hypothesis of the study is the existence of a significant positive impact of intangible assets on the financial performance of ICT companies. A sample of 180 Slovak ICT companies for the period 2015–2019 has been investigated. The primary research method was the regression analysis of panel data, which was carried out using the GRETL software package. Four regression models were formed based on using such dependent variables as Return on Assets, Net Profit Margin, Assets Turnover, and Return on Equity. Each of the selected models included eight independent variables – Research and Development Intensity, Research and Development Intensity Squared, Software, Intellectual Property Rights, Acquired Intangible Assets, Leverage, Size, and Dummy variable for ICT sub-sectors. For each of the models, an estimate panel data parameter was chosen based on the F-statistics test, Breusch-Pagan test, and Hausman test (Model 1-3 – Pooled OLS model, Model 4 – Fixed Effects Method). Adequacy of each of the models to the generated data was checked on the basis of the Normality test, Autocorrelation test (Wooldridge test for autocorrelation), and Heteroscedasticity test (White test, Wald test). The hypothesis of the study was partially confirmed, since only RDI, RDI2 and AIA have a significant positive impact on the financial performance of Slovak ICT companies. The strength and direction of influence of independent variables vary depending on the indicator characterizing financial performance. Only the independent variable AIA has a permanent inverse effect on all indicators of financial performance of Slovak ICT companies. It was established that the level of influence of control variables on indicators of financial performance is partial and multidirectional, and applies only to certain types of them.

Paper Citation

in Harvard Style

Lehenchuk S., Vakaliuk T., P. Nazarenko T., Kubaščíková Z. and Juhászová Z. (2022). Empirical Evidence of Intangible Assets Improve the Financial Performance of Slovak ICT Companies. In Proceedings of 10th International Conference on Monitoring, Modeling & Management of Emergent Economy - Volume 1: M3E2; ISBN 978-989-758-640-8, SciTePress, pages 38-52. DOI: 10.5220/0011931000003432

in Bibtex Style

@conference{m3e222,
author={Serhii Lehenchuk and Tetiana Vakaliuk and Tetiana P. Nazarenko and Zuzana Kubaščíková and Zuzana Juhászová},
title={Empirical Evidence of Intangible Assets Improve the Financial Performance of Slovak ICT Companies},
booktitle={Proceedings of 10th International Conference on Monitoring, Modeling & Management of Emergent Economy - Volume 1: M3E2},
year={2022},
pages={38-52},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0011931000003432},
isbn={978-989-758-640-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of 10th International Conference on Monitoring, Modeling & Management of Emergent Economy - Volume 1: M3E2
TI - Empirical Evidence of Intangible Assets Improve the Financial Performance of Slovak ICT Companies
SN - 978-989-758-640-8
AU - Lehenchuk S.
AU - Vakaliuk T.
AU - P. Nazarenko T.
AU - Kubaščíková Z.
AU - Juhászová Z.
PY - 2022
SP - 38
EP - 52
DO - 10.5220/0011931000003432
PB - SciTePress