Impact of Intangible Assets on Corporate Financial Performance

The purpose of this study was to determine whether a firm's higher intangible asset value leads to a better financial performance. Specifically, this study explored relationships between intangible indicators, such as Tobin q, market-to-book ratio, and EVA, and financial indicators, such as the return on asset (ROA), return on equity (ROE), return on invested capital (ROIC) and net income. The study also determined relationships between firms’ intellectual property, such as the number of patents, trademarks, and copyrights the firms own, and their intangible indicators.