Intangible assets as possible indicators for the growth of the Hungarian firms
International Journal of Accounting & Information Management
ISSN: 1834-7649
Article publication date: 7 October 2021
Issue publication date: 22 November 2021
Abstract
Purpose
Intellectual capital has become one of the most important factors in the knowledge economy. It is the combination of human capital and structural capital. The purpose of this paper is to examine the effect of intellectual capital, especially the effect of structural capital on the productivity of Hungarian firms between 2007 and 2017.
Design/methodology/approach
This paper analyzes the impact of intellectual capital on the output of the Hungarian firms in a fixed effect dynamic model, using the lagged dependent and explanatory variables method. This study is based on annual reports of Hungarian enterprises.
Findings
This study proved that intellectual capital was a relevant source of the effectiveness of the firms in Hungarian industry in the examined period, and structural capital had the strongest impact on productivity of the firms.
Research limitations/implications
The annual report as database nonetheless bears the specificity and the limitation of the model alike. Labor costs, the proxy for human capital can measure the level only indirectly. Intangible assets, the proxy for structural capital contain more items which are optional.
Practical implications
The results reflect that the internally developed knowledge became the most relevant source for Hungarian firms to increase their productivity, but externally generated innovation may offer further possible sources to boost their own efficiency.
Originality/value
Unlike the previous empirical research in Hungary the source of variables in this model is based on the data of annual reports. This database allows to examine a larger panel investigation for a longer period than those methods which collect data on a voluntary basis, e.g. Community Innovation Survey.
Keywords
Acknowledgements
The author would like to express his special thanks to Sarolt Groma, Zsolt Becsey and Anikó Unger.
Citation
Katona, K. (2021), "Intangible assets as possible indicators for the growth of the Hungarian firms", International Journal of Accounting & Information Management, Vol. 29 No. 5, pp. 764-775. https://doi.org/10.1108/IJAIM-03-2021-0060
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited