IDEAS home Printed from https://ideas.repec.org/a/sdo/regaec/v33y2024i1_6.html
   My bibliography  Save this article

Intangible assets and their effects on business performance: an analysis for Colombian companies

Author

Listed:
  • Méndez-Morales, Alberto
  • Anzola-Morales, Camilo
  • Ruiz-Acosta, Liliana Elizabeth
  • Camargo-Mayorga, David Andrés

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.

Suggested Citation

  • Méndez-Morales, Alberto & Anzola-Morales, Camilo & Ruiz-Acosta, Liliana Elizabeth & Camargo-Mayorga, David Andrés, 2024. "Intangible assets and their effects on business performance: an analysis for Colombian companies," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 33(1), pages 1-28.
    • Handle: RePEc:sdo:regaec:v:33:y:2024:i:1_6
    as

    Download full text from publisher

    File URL: https://revistas.usc.gal/index.php/rge/article/view/9138/13567
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Profitability; Dynamic panel model; Accounting practices; Unbalanced panels; IFRS;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sdo:regaec:v:33:y:2024:i:1_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marisa Chas-Amil (email available below). General contact details of provider: https://edirc.repec.org/data/feusces.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.