Impact of Intangible Assets and R&D on Firm Performance: An Empirical Study on Textile Industry of Pakistan.

Abstract

The main purpose of this study is to investigate an impact of intangible assets and R&D on firm performance by using performance indicators ROA, ROE and Stock Market performance. For this study I used Resource based view theory. I collected panel data from sample of 81 listed companies on Textile industry of Pakistan. Data has been collected through Thomson Router data stream and balance sheet of the firms. Results have shown a positive impact of intangible resources on firm financial performance. These finding will help top managers to increase the performance of their firm by investing more in intangible assets and realization of the value of intangible assets for a firm growth. Intangible assets data was missing from a large number of listed companies so previous studies struggled to measure and identify an impact of intangible assets on firm performance, especially in Pakistan. This study will overcome this gap of understanding the nature and effect of intangible assets on firm performance.