On The Correlation Between The Proportion Of Intangible Assets And Firm Performance From Chinese Listed Companies

In this article,we employ three methods(i.e.,time-series method,event-year method and the fixed sample group method)to investigate the proportion of intangible assets in high-technology industry,the whole industry and its sub-sectors.The data used consist of 1886 companies listed IPO in China.Then,we discuss the non-ergodic of timing characteristics for the event-year method.Finally,this article establish a signaling game model based on the timing characteristics to investigate intangible assets,the static correction and the dynamic correction between the proportion of intangible assets and business performance.The main findings of empirical research include: i)Generally,the proportion of intangible assets is non-ergodic for most listed companies in china,whereas it is ergodic in the high-technical industry.ii)With respect to the sub-sectors,the proportion of intangible assets is also non-ergodic in mining industry,and agriculture,forestry,animal husbandry and fishery industry.Meanwhile,in these two industries,the degree of the proportion of intangible assets can provide some effective information for investors to translate the intangible assets to business performance.Conversely,iii)The proportion of intangible assets is ergodic in high-technology industry,information transmission,software and information technology services industry,as well as wholesale and retail industry.It cannot reflect the real level of the listed companies.iv)For the managers of an enterprise,the proportion of intangible assets depends on the non-ergodic and the level of enterprise.Moreover,for the principle of fairness and openness,regulatory authorities and public agencies should review the motivation of an abnormal increase in the proportion of intangible assets for a pre-listed company.