engleski

THE IMPACT OF INTANGIBLE ASSETS ON FINANCIAL PERFORMANCE OF CROATIAN COMPANIES

Intangible assets are identified as important factor which can significantly contribute to financial position and profitability of a company. Recently, importance of intangible assets is considerably increasing what is indicated by higher investments that companies make in this component of non-current assets. The main objective of this paper is to identify relationship between investment in intangible assets represented by intangible assets to total assets ratio and financial performance of companies represented by various financial ratios. Also, relationship between investment in intangible assets and bankruptcy status will be determined. Mainly, profitability ratios as Return on Assets, Return on Equity, Net Profit Margin, Gross Profit Margin etc. are used as measures of financial performance. The empirical findings are based on sample which consists of companies that operated in Republic of Croatia. Financial information was obtained from annual financial statements which are publicly available on Croatian Financial Agency website. The sample comprises of two groups. First group consists of companies which opened a bankruptcy proceeding and second group consists of companies which haven't opened a bankruptcy proceeding. Information about bankruptcy status was obtained from Croatian Official Gazette website. The companies included in sample are classified in two activities - manufacturing industry and wholesale and retail industry.

bankruptcy ; Croatia ; financial performance ; intangible assets

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