Intangible assets as possible indicators for the growth of the Hungarian firms

• DOI: https://doi.org/10.1108/IJAIM-03-2021-0060
• Published date: 07 October 2021
• Date: 07 October 2021
• Pages: 764-775
• Subject Matter: Accounting & finance,Accounting/accountancy,Accounting methods/systems
• Author: Klára Katona

Intangible assets as possible

indicators for the growth of the

Hungarian f‌irms

Kl

ara Katona

Faculty of Law and Political Sciences, Heller Farkas Institute for Economics,

P

azm

any Péter Catholic University, Budapest, Hungary

Abstract

Purpose –Intellectualcapital has become one of the most important factors in the knowledge economy. It is

the combination of humancapital and structural capital. The purpose of this paper is to examinethe effect of

intellectual capital, especiallythe effect of structural capital on the productivity of Hungarian f‌irms between

2007 and 2017.

Design/methodology/approach –This paper analyzesthe 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. Thisstudy is based on annual reports of Hungarian enterprises.

Findings –This study proved that intellectualcapital was a relevant source of the effectiveness of the f‌irms

in Hungarian industryin 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 containmore items which are optional.

Practical implications –The results ref‌lect that the internally developed knowledge became the most

relevant source for Hungarian f‌irms to increasetheir productivity, but externally generated innovation may

offer furtherpossible 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 investigationfor a longer

period than those methodswhich collect data on a voluntary basis, e.g. Community Innovation Survey.

Keywords Intangible assets, Productivity, Intellectual capital, Structural capital, Hungarian f‌irms

Paper type Research paper

1. Introduction

Intellectual capital is the main resource of development for companies and has become a

more important driver of corporate productivity and competitiveness in the knowledge

economy than physicalcapital is (Granstrand, 2000).

The value of the intellectual capital is formed by three components together: knowledge

related to employees (human capital), knowledge related to customers (relational capital)

and knowledge related to the f‌irm (organizationalcapital). These last two capitals (relational

and organizational)together compose structural capital (Edvinsson and Malone, 1997).

The main distinction between human and structural capital lies in being under company

control. Fundamentally, human capital cannot become subject to agreements. Hence, usually, it

is not under company control either. Human capital can be approximated by the qualif‌ication

The author would like to express his special thanks to Sarolt Groma, Zsolt Becsey and Anik

o Unger.

IJAIM

29,5

764

Received10 March 2021

Revised1 June 2021

17August 2021

Accepted27 August 2021

InternationalJournal of

Accounting& Information

Management

Vol.29 No. 5, 2021

pp. 764-775

© Emerald Publishing Limited

1834-7649

DOI 10.1108/IJAIM-03-2021-0060

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