Study Of Intangible Assets Performance Of Listed Companies In The Construction Industry

The construction industry is the traditional pillar industry in China. In recentthree decades, a relatively complete industrial system has taken shape in China’sconstruction industry and remarkable achievements have been achieved. However,most construction companies attach importance to input of intangible assetsexcessively, but look sight of intrinsic value of intangible assets, they fail tounderstand contribution of intangible assets to corporate operating activities, whichgives rise to construction enterprises managing intangible assets in a comparativelylow level. In accordance with economic data released by listed companies in theconstruction industry, China’s construction industry achieves extremely huge scale,but the economic benefit caused by increase of intangible assets investment does notincrease investment efficiency of building enterprises, for this reason, buildingenterprises must strengthen effective management on performance of intangible assetsand give full play to value influence capacity of intangible assets so as to realizeprofit maximization of companies.Normative and empirical researches are adopted in this thesis to conduct analysison intangible assets performance of listed companies in the construction industry.Normative researches consist of the definition, classification and characteristics ofintangible assets; theoretical research of intangible assets performance on corporateoperating influence as well as relevant theoretical analysis appropriate for research ofintangible assets performance. Empirical Analysis is mainly composed by the currentsituation of intangible assets of listed companies in the construction industry, analysison influence of quantization of entire intangible assets performance on corporateoperation as well as analysis on influence of quantization of single intangible assetsperformance on corporate operation.This thesis covers the main points are as follows:1.The background of the study of intangible assets performance of listedcompanies in the construction industry is discussed in this thesis, and many respectsare described in the form of research significance of problems studied, the currentsituation of domestic and foreign researches, research contents, research methods andinnovative points of the research.2.The concept of intangible assets and different classification methods are discussed in this thesis, the mechanism of action of intangible assets performance isanalyzed and the comparable profits method and hierarchy of needs theory adopted inresearching intangible assets performance are introduced in detail.3.This thesis begins with the concept of intangible assets to conduct thestatistical analysis on the conduction of assets of listed companies in the constructionindustry from2006to2010. It is mainly composed by the descriptive statistics ofintangible assets affirmed by listed companies in the construction industry in China,the variation trend of intangible assets investment of different types in this thesis’sstudy interval as well as data statistics analysis on construction of intangible assets.4.Analysis is also conducted on the operating performance of the entireintangible assets and the single intangible assets of listed companies in theconstruction industry in this thesis: the comparable profits method is adopted toquantize influence of the entire intangible assets on operating performance of theentire intangible assets so as to highlight the importance degree of the entireintangible assets operating performance; the analytic hierarchy process is adopted toseparate the influence of single intangible assets operating performance from theentire intangible assets performance to acquire the quantization result of the influencedegree of single intangible assets operating performance.The results show that the amount of intangible assets owned by the constructionlisted companies in China increases year by year and the annual investment incrementof intangible assets exceeds the total assets in the same period of the previous year;the intangible assets of listed companies in the construction industry are mainlycomposed by land-use right and franchise rights, the technological content intangibleassets is very low, and the asset structure is unreasonable; the intangible assetsoperating performance exerts outstanding influence on the company, that is, the moreinput of intangible assets, the greater contribution, and operating performance ofdifferent intangible assets exerts different influence on the company, the intangibleassets of technology exerts the biggest influence on the company, while the intangibleassets of land-use rights, the smallest. Through this study, investors and operatorscomprehend the rationality of intangible assets structure of the company and thedevelopment potential of the various asset classes so as to strengthen the investmentmanagement of intangible assets.