Abstract
The aim of this paper is to investigate the impact of investment in intangible assets on the companies’ business performances which are observed as profitability. Investment in intangible assets is one of the crucial activities and resources that contribute to achievement of competitive advantage, company growth, and development. According to previous research papers and significant impact of intangible assets on firm performance, the effect of intangible assets on companies’ profitability in Serbia was conducted. The research is based on the financial statements of 194 observations of companies listed on Belgrade stock exchange during 2017–2020. The sample consisted of small, medium, and large enterprises from manufacturing sector (Section C). The results of the models have clearly documented that there is a significant positive relationship between intangible assets and financial performance of companies measured as profitability ratios. Investment in intangible assets affects profitability of companies positively. This paper has helped to expand the theoretical concept of intangible assets and the impact of investment in intangible assets on profitability of companies. The results of research should encourage the managers of listed manufacturing companies to invest more in intangible assets in order to increase profitability.
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Medved, I., Peštović, K., Saković, D. (2023). The Effect of Innovation Through Intangible Assets on Company’s Profitability. In: Benković, S., Labus, A., Milosavljević, M. (eds) Digital Transformation of the Financial Industry. Contributions to Finance and Accounting. Springer, Cham. https://doi.org/10.1007/978-3-031-23269-5_4
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