The Research On The Value Relevance Of Intangible Assets In China's Enterprises

In the industrial economic times, because of the pursuit of economies of scale, physical assets have become a major asset in the balance sheet. Compared to the traditional industrial economy, 21st century is knowledge-based economy, with sustainable economic development, and the investment in intangible assets, and the economic integration in the world, and knowledge-based features in economic decision-making, and the investment in intangible assets is one of the major characteristics. In the knowledge-based economy, intangible assets have become important economic resources and played a more and more important role in value creation of the enterprise. From the accounting perspective, the proportion that intangible assets accounted for the whole assets has significantly increased. In some high-tech enterprises, intangible assets with knowledge and wisdom such as patents and trademarks increased, its proportion exceeded the proportion of fixed assets and was even the first. Therefore, accounting theory and practice in intangible assets has become the focus on the field of financial accounting and research in recent years.In this paper, we adopt research methods of theoretical analysis and empirical testing, firstly sort out research about the value relevance of intangible assets both at home and abroad, evaluate the limitations of the study and pointed out the ideas in this paper; Secondly, from the basic concept of intangible assets, we explain the value relevance of intangible assets, introduce the accounting standards of China's intangible assets and the comparative analysis of the impact on the information about intangible assets, and analyze intangible assets' impact on accounting earnings and stock prices; And then, using empirical research methods, we apply general data of intangible assets as the sample, test intangible assets' impact on accounting earnings and stock prices, and the sample is divided into high-tech enterprises and non-high-tech enterprises, and we test whether the new accounting standards have improved the value relevance of intangible assets; Finally, we summarize the basic conclusions, put forward the countermeasures and suggestions on how to enhance the value relevance of intangible assets, and point out the limitations of research and research directions in the future.The main innovations in this paper include the following two aspects: Firstly, using the implementation of new accounting standards as the cut-off point, we do comparative analysis of the data after the new accounting standards and the data before the new accounting standards, draw the conclusion that the value relevance of intangible assets of enterprises in China has been enhanced, prove the preliminary validation of the new accounting standards of intangible assets. Secondly, the study period in this paper is 2003-2007, the sample data includes the data after the implementation of new accounting standards and the data before the implementation of new accounting standards, because of time constraints previous studies didn't relate to the study period.