Intangible Capital And The Investment-q Relation

With the development of the times,intangible assets have received more and more attention from enterprises,even the state.A large number of scholars have proved that investment in intangible assets can bring considerable future benefits,which means that the existence of intangible assets will increase the value of enterprises,and the performance is mainly in the establishment of corporate brands,the reserve of professional talents and patented technologies.On the one hand,the intangible assets of company are generated from the internal creations such as professional technology,professional talents.On the other hand,the acquisition of the company,which wants to expand its scale,both the process of create corporate intangible asset bring the accumulation of assets,specially the intangible asset.However,what needs to recognized is that the computational method and confirmation process of intangible assets is narrow,this phenomenon exist not only our country but also other country of the world.That maybe make the intangible assets through our count be biased towards real value of intangible assets.Over the years,with the efforts of scholars,a lot of methods of the computational method have emerged,the goal is to find the closest value to real intangible assets.However,due to the particularity of intangible assets,it is inevitable that the process of count still have more or less errors.Especially in China,during the accounting of intangible assets,it is need to satisfy two certain conditions,such as the the intangible assets must bring the income for the company.That is inevitable to regard some investment of intangible assets as expense,such as the long period investment of intangible assets.This way will ignore some hidden assets.The correct and reasonable method of accounting for intangible assets can not only accurately price the company but also contributed to the company's research.This paper refers to Peter&Taylor(2016)accounting method,integrates intangible assets into investment theory,and regards intangible assets as one of the important factors affecting company investment.The main parameters of this paper are mainly based on the intangible assets after the accounting,and the intangible assets investment is added to the converted SG&A.All variables are expressed in the form of ratios.The accounting of intangible assets is based on the cumulative model,which will be easily ignored in the past.Intangible assets are included in intangible assets in a cumulative calculation.This paper intends to use the financial data of A-share listed companies from 2007 to 2016,and adopts the listed companies that remove the financial industry and net assets.The article mainly uses the least squares regression method to carry out regression analysis on the panel data of the company.The independent variable is the constructed investment q,and the other parameters are dependent variables.It mainly studies the influence of the q value of the lag phase on the company's asset investment and the forecasting ability.The article adds goodwill and cash flow to model comparison.During the research,it was found that the investment q based on Tobin q will affect the company's next investment decision,and the investment q can better explain the company's asset investment behavior relative to Tobin q.Based on the investment q,this paper explores the effect of the model in different industries,different years,and different asset proportions by regression of subsamples.The findings of this paper after the empirical results are as follows:(1)The re-accounted intangible assets can adapt well to the improved investment model,indicating that China's intangible assets do have certain problems in the confirmation and accounting;(2)According to this paper The theoretical construction of the new Tobin q,its model effect is better than the traditional Tobin q,which proves that the addition of intangible assets is of practical significance for the company research in the new era;(3)in the subsample regression Although the company with high intangible asset stocks does meet the basic understanding,it is found in the analysis of the subsamples of the industry that the most suitable model for this paper is not the high-tech industry,but the manufacturing and consumer industries;(4)relative to another investment.The alternative subject-cash flow,the Tobin q investment theory proposed in this paper is more representative.For the above conclusions,the explanation of this article is based on China's market and national conditions.Today,in the high-tech industry,the model is more suitable for these traditional industries than the traditional manufacturing and consumer industries with huge bases.In the classification of the industry,it can also be seen that the amount of data is far less than other traditional industries.In general,the study of intangible assets is still in its infancy in China,and its research will still be subject to many restrictions and constraints.The main work of this paper is to integrate intangible assets into the neoclassical investment theory,replace the traditional Tobin q with the newly constructed investment q,to better explain the company's intangible asset investment,and we can also invisible to the company through research.Asset investment and tangible asset investment are forecasted,and even the current company's asset structure is optimal.