Abstract
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.
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This research [grant number SP-2-21-162] has been supported by Shota Rustaveli National Science Foundation of Georgia (SRNSFG).
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Abramishvili, N., Herman, A., Lvova, N., Pailodze, N., Yanshina, E. (2023). Internet Retailers’ Valuation: Why Intangible Assets Matters and How to Assess Them. In: Kabashkin, I., Yatskiv, I., Prentkovskis, O. (eds) Reliability and Statistics in Transportation and Communication. RelStat 2022. Lecture Notes in Networks and Systems, vol 640. Springer, Cham. https://doi.org/10.1007/978-3-031-26655-3_41
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