IDEAS home Printed from
   My bibliography  Save this article

The Linkage Between Intangibles And Profitability


  • Adriana Tiron Tudor
  • Åžtefana Dima (Cristea)
  • Bogdan Dima
  • Raluca Valeria RaÅ£iu


The intangibles can be viewed as strategic assets, since their inclusion in the structure of the total assets allows economic entities to extract a “competiveness rent†and, thus, to enhance the outcomes of their activity. This paper seeks to provide some empirical evidences for the effects exercised by shocks emerged at the level of intangible-to-total assets ratio on profitability in the case of 562 large companies listed on Frankfurt Stock Exchange and London Stock Exchange. We found that, for the full sample, there is a relatively steady relationship between this ratio and various measures of profitability (Return on Assets - ROA, Return on Capital Employed - ROCE and Gross Margin). However, when the two markets as whole or different sectors are considered, there seem to be various significant structural differences and some scale effects in the transmission of the intangibles' impact on profitability. Moreover, we check the robustness of the results in view of two control variables: cash flow-to-operating revenue ratio appears to be the most robust, whereas the effects of solvability ratio are less stable and vary across markets and sectors.

Suggested Citation

  • Adriana Tiron Tudor & Åžtefana Dima (Cristea) & Bogdan Dima & Raluca Valeria RaÅ£iu, 2014. "The Linkage Between Intangibles And Profitability," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(16), pages 1-25.
  • Handle: RePEc:alu:journl:v:1:y:2014:i:16:p:25

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Kaiss Sarra & Nezha Baghar & Mounime El Kabbouri, 2018. "Goodwill and Performance," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(3), pages 1-2.

    More about this item


    intangibles; profitability;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting


    Access and download statistics


    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:alu:journl:v:1:y:2014:i:16:p:25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dan-Constantin Danuletiu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.