IDEAS home Printed from
   My bibliography  Save this article

The Influence of Reporting Intangible Capital on the Performance of Romanian Companies


  • Cristina PRECOB

    () (Alexandru Ioan Cuza University of Iasi)

  • Marilena MIRONIUC


The purpose of this article was to identify the correlations between intangible capital and organisational performance, for the Romanian companies quoted in the Bucharest Stock Exchange, BSE section. Intangible capital was computed based on 13 criteria grouped into three components: human capital, relational capital, and innovation, and the financial performance of the company was studied through the return on assets (ROA), the return on equity (ROE), and the economic return (Re). In this article, the financial performance for Romanian companies is reflected by the goodwill, computed as the difference between the market capitalization and the net accounting asset of an entity, as well as by the market to book value (M/BV- the ratio between the market capitalization and the net accounting asset of the company). The article also investigates the existence of a correlation between the intangible capital of Romanian companies and the auditor contracted to audit the annual financial statements. The results of research show that between intangible capital and the positive goodwill of the studied companies, on the one hand, and the economic return, respectively the market to book value, on the other hand, there are direct correlations. At the same time, the value of intangible capital is, statistically, significantly higher in companies whose financial statements are audited by Big4 auditors and in companies that record profit.

Suggested Citation

  • Cristina PRECOB & Marilena MIRONIUC, 2016. "The Influence of Reporting Intangible Capital on the Performance of Romanian Companies," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(133), pages 103-103, January.
  • Handle: RePEc:aud:audfin:v:133:y:2016:i:14:p:103

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Brown, Stephen & Lo, Kin & Lys, Thomas, 1999. "Use of R2 in accounting research: measuring changes in value relevance over the last four decades," Journal of Accounting and Economics, Elsevier, vol. 28(2), pages 83-115, December.
    2. Claudiu-Marian Gruian, 2011. "The Influence Of Intellectual Capital On Romanian Companies' Financial Performance," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-9.
    3. Ester Oliveras & Yulia Kasperskaya, 2004. "Reporting intellectual capital in Spain," Economics Working Papers 781, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Yu-Shan Chen, 2008. "The Positive Effect of Green Intellectual Capital on Competitive Advantages of Firms," Journal of Business Ethics, Springer, vol. 77(3), pages 271-286, February.
    5. Lev, B & Zarowin, P, 1999. "The boundaries of financial reporting and how to extend them," Journal of Accounting Research, Wiley Blackwell, vol. 37(2), pages 353-385.
    Full references (including those not matched with items on IDEAS)

    More about this item


    intangible capital; return on assets; return on equity; economic return; market to book value; goodwill; Big Four auditor;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility


    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:aud:audfin:v:133:y:2016:i:14:p:103. 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: (Dumitru Valentin Florentin). 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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.