Document Type

Article

Source of Publication

Economic Horizons

Publication Date

5-1-2024

Abstract

The paper examines how intangible assets, measured as the Value Added Intellectual Coefficient (VAIC), impact the margin and return ratios of the most profitable companies in Serbia. Previous research has demonstrated that intangible assets have a positive effect on the company’s profitability across various contexts, including the European Union, the United Kingdom, and Serbia as well. This research study aims to determine whether intangible assets have a positive effect on the four ratios, namely the Net Profit Margin (NPM), the Earnings Before Interests, Taxes, Depreciation, and Amortization margin (EBITDAm), Return on Assets (ROA), and Return on Equity (ROE) or not. In the study, a sample consisting of the data collected from the official publication of the Serbian Business Registers Agency (SBRA) covering the period from 2017 to 2020 is used. The sample includes the 72 most profitable firms after excluding those not meeting the VAIC requirements. The findings of the study are indicative of the fact that intangible assets do have a positive impact on all the four ratios (NPM, EBITDAm, ROA, and ROE), which implies that companies in Serbia should prioritize investing in intangible assets so as to enhance their profitability and competitiveness.

ISSN

1450-863X

Publisher

Centre for Evaluation in Education and Science (CEON/CEES)

Volume

26

Issue

2

First Page

157

Last Page

174

Disciplines

Business

Keywords

intangibles, intellectual capital, performance, profitability, VAIC

Scopus ID

85202970419

Indexed in Scopus

yes

Open Access

yes

Open Access Type

Gold: This publication is openly available in an open access journal/series

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