The Firm Size Effect on Performance Due to Intangible Resources
18 Pages Posted: 17 Jan 2015
Date Written: January 15, 2015
The paper explores the effect of firm size on the relation between intangible resources and companies’ performance (ROA). The authors identify six types of intangibles: human resources and management capabilities, innovation and internal process capabilities and customer loyalty and networking capabilities. The study provides econometric justification using a database of more than 1400 European public companies. The time period for the investigated data covers ten years from 2004 to 2013. A dummy regression analysis was applied for empirical testing. The findings revealed that the size of a company matters with regard to the employment of intangible resources and for a performance based on intangibles.
Keywords: intangibles, performance, SME, large companies, European companies, ROA, dummy regression.
JEL Classification: O30, F 14, L 25, L60, L63
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