Contribution Of Intangible Assets To Corporate Value

As the roles which knowledge and technology are playing in corporate value creation becoming increasingly important, our country launched the national medium to long range program for scientific and technological development. Besides, as the application of the new version of good practices in the manufacture and quality control of drugs (2010), the premium acquisitions becomes popular in the pharmaceutical industry. This trend enhances the importance of intangible assets. However, our country’s research on intangible assets is still on the early stage, and the research on the relationship of intangible assets and corporate value is still superficial. So this article is essential for the improvement of the efficiency on the input and output of intangible assets and finally increase the corporate value through the research on the contribution of different type of intangible assets in value creation.This assay uses the normative and empirical method to study the intangible assets’influence on corporate value. Firstly, this paper illustrate the definition, classification of intangible assets and corporate value for the further research; Secondly, based on the Resource-Based View, Core Competence Theory and Technical Innovation Theory, this essay focus on the mechanism of intangible assets contributing to the corporate value creation and discovers that the intangible assets infiltrate the whole value creation process; Thirdly, this article introduce the definition and characteristics of the pharmaceutical manufacturing industry and uses the statistical analysis method to analyze the current situation of its intangible assets, concludes that the disclosure of intangible assets is inadequate and intangible assets has little useful composition; In the fourth part, based on the classification of intangible assets, this paper uses empirical method to quantify the contribution of intangible assets on corporate value and finds out that technical intangible assets are more contributive than land-use right; In the final part, this article summarizes the above research and then proposes several suggestions on the application and disclosure of intangible assets. This article choose the pharmaceutical industry and classify its intangible assets, analyze the different type of assets’contribution on value creation to enrich the intangible assets’theoretical frame and make the relative research to be more specific and realistic.