Application of an intangible asset valuation model using panel data for listed enterprises in Vietnam

Abstract

Intangible assets play an important role in increasing the value of companies. The performance of companies increasingly depends on ideas, information, and professional services rather than tangible assets. The question of how to accurately measure intangible assets remains a challenge for many scientists. This study aims to measure intangible assets of 396 companies listed on Vietnam’s stock market between 2010 and 2014 using the panel data technique by Yamayuchi (2014). The estimation shows that intangible assets make up a large share of total assets of companies. In addition, construction, steel, building materials, mining, and food are sectors with high intangible assets in Vietnam. The study also finds a positive impact of intangible assets on improving company performance. The findings demonstrate the importance of investing in intangible assets, such as R&D, technology, advertising, and human resources, to increase the value of a company in the future.

Do intangible assets help SMEs in underdeveloped markets gain access to external finance?—the case of Vietnam

“…Building on this, we demonstrate that intangibles are also linked to improved access to capital resources, which could be one of the key mechanisms that strengthens the competitive advantages of SMEs and helps them achieve better performance. Our findings thus echo Quan et al (2020) who, also in the context of Vietnam, estimate that intangible assets increasingly make up a large share of companies' total assets, and that intangible assets exert a positive impact on improving company capability of obtaining external sources of fund.…”

“…Second, the secondary markets for trading intangible assets (e.g. trademarks, franchises, copyrights) is starting to develop in Vietnam (Quan et al, 2020). Therefore, banks may find it feasible to liquidate the intangible assets that firms have pledged as collateral in the event of payment default.…”

“…The changing economic and institutional conditions inevitably led to the increasing importance of intangible assets. For example, Quan et al (2020) evidently show that since 2010, intangibles have made up a large share of the total assets of Vietnamese firms. Based on their arguments, we use a split-sample method to examine the increasing importance of intangibles to Vietnamese SMEs.…”

Enterprises' innovative activity management oriented to their market value increase

“…The results of the study by Binh et al (2020) showed that intangible assets of enterprises, which are the basis and at the same time the result of innovative activities of companies, have a positive impact on increasing the efficiency of enterprises and increasing their market value. At the same time, there is no general approach to assessing the value of intangible resources as objects of management influence, especially those that cannot be accurately identified in the accounting and financial statements of a business entity as intangible assets.…”

“…In most studies, three main approaches to the valuation of intangible assets are distinguished: cost, income and market approaches (Binh et al 2020;Pastor et al, 2017;Salamudin et al, 2010).…”