TY - GEN

T1 - Internet retailers’ valuation: why intangible assets matters and how to assess them

AU - Абрамишвили, Нели Руслановна

AU - Херман, Энтони

AU - Львова, Надежда Алексеевна

AU - Pailodze, N.

AU - Яншина, Екатерина

N1 - Conference code: 22

PY - 2023

Y1 - 2023

N2 - The paper considers the role of intangible assets in Internet retail companies’ evaluation. The research was aimed to reveal the relevance and determine the methods of intangible assets assessment in the context of Internet retailers’ valuation. The research methodology involved comparative analysis of approaches to valuation of intangible asset; assessment of the relevance of intangible assets from the perspective of strategic business advantages; testing a series of hypotheses including the following: 1) the share of intangible assets in the total asset structure of Internet retail companies significantly and positively affects the return on equity (ROE); 2) different approaches to accounting for intangible assets of Internet retail companies create a significant difference in assessing their value; 3) the share of intangible assets in the total asset structure of Internet retail companies has a significant and positive effect on capitalization. The hypotheses were tested using an econometric model based on panel data as well as using event analysis. The results of testing the hypotheses confirmed the assumptions about the positive impact of intangible assets on the ROE and capitalization of online retailers while rejecting the hypothesis regarding the difference in approaches to accounting for intangible assets. The proven impact on ROE and capitalization suggests that the presence of intangible assets on a company’s balance sheet contributes to improving its efficiency and directly affects the increase in its value.

AB - The paper considers the role of intangible assets in Internet retail companies’ evaluation. The research was aimed to reveal the relevance and determine the methods of intangible assets assessment in the context of Internet retailers’ valuation. The research methodology involved comparative analysis of approaches to valuation of intangible asset; assessment of the relevance of intangible assets from the perspective of strategic business advantages; testing a series of hypotheses including the following: 1) the share of intangible assets in the total asset structure of Internet retail companies significantly and positively affects the return on equity (ROE); 2) different approaches to accounting for intangible assets of Internet retail companies create a significant difference in assessing their value; 3) the share of intangible assets in the total asset structure of Internet retail companies has a significant and positive effect on capitalization. The hypotheses were tested using an econometric model based on panel data as well as using event analysis. The results of testing the hypotheses confirmed the assumptions about the positive impact of intangible assets on the ROE and capitalization of online retailers while rejecting the hypothesis regarding the difference in approaches to accounting for intangible assets. The proven impact on ROE and capitalization suggests that the presence of intangible assets on a company’s balance sheet contributes to improving its efficiency and directly affects the increase in its value.

KW - Business valuation

KW - Capitalization

KW - Digital economy

KW - Intangible assets

KW - Internet retails companies

UR - https://link.springer.com/chapter/10.1007/978-3-031-26655-3_41#citeas

UR - https://www.scopus.com/authid/detail.uri?authorId=57189349015

UR - https://www.mendeley.com/catalogue/91232c8a-c968-33e7-8e8b-20f6486c3f43/

U2 - 10.1007/978-3-031-26655-3_41

DO - 10.1007/978-3-031-26655-3_41

M3 - Conference contribution

SN - 9783031266546

T3 - Lecture Notes in Networks and Systems

SP - 450

EP - 461

BT - RelStat 2022: Reliability and Statistics in Transportation and Communication

T2 - International Multidisciplinary Conference on Reliability and Statistics in Transportation and Communication

Y2 - 20 October 2022 through 21 October 2022

ER -