Internally generated intangible assets the vaccine for UK listed finance industry financial contagion?

Simple item page
dc.contributor.advisorDe Jesus, Carlos
dc.contributor.authorLouw, Gerhard
dc.date.accessioned2025-12-02T09:04:14Z
dc.date.available2025-12-02T09:04:14Z
dc.date.issued2025
dc.date.updated2025-12-02T09:00:24Z
dc.description.abstractContext: Internally generated non-capitalised intangible assets (IGNIAs) are not included in companies' balance sheets per international accounting standards, as they do not contribute to providing firms with resilience during crises. However, some companies gain a competitive advantage by continuously investing in IGNIAs , which management and investors should prioritize to foster resilience during unforeseen crises. Purpose: This study aims to determine whether investment in IGNIAs provided resilience, proxied by Return on Assets (ROA), during the COVID-19 crisis for 257 UK- listed finance firms from 2016-2023. The focus is on the UK finance industry due to its significant role in global financial contagion during crises. Research Design: This study used quantitative methods, employing firm-specific variables to test the hypotheses developed from existing theories. A longitudinal design was used with cross-sectional data from various firms in the finance industry. The study reviewed the relationship between UK finance firms' investment in IGNIAs and their resilience. It compared the resilience of firms that invested more in IGNIAs before the COVID-19 crisis to those that invested less, to determine if these assets contributed to their resilience. Main Findings: The study did not find a statistically significant relationship between investment in IGNIAs and resilience measured by ROA for the entire sample of 257 UK finance firms from 2016-2023. However, a somewhat statistically significant relationship was found between IGNIAs and resilience in the financial services industry only after the COVID-19 pandemic period, 2020-2023. Contribution: This study provides insights into the importance of IGNIAs in fostering resilience, especially for the finance industry, and contributes to the ongoing debate on whether these intangible assets should be included in firms' balance sheets. It highlights the need for industry-specific measures to resolve the contentious issue of capitalising IGNIAs.Recommendations and Implications: Management should prioritise continuous investment in IGNIAs to foster resilience and provide protection against unforeseen market crises. Standard-setting bodies should reconsider disclosing IGNIAs, as they are important factors for investors to consider when making informed investment decisions.
dc.identifier.apacitationLouw, G. (2025). <i>Internally generated intangible assets the vaccine for UK listed finance industry financial contagion?</i>. (). University of Cape Town ,Faculty of Commerce ,College of Accounting. Retrieved from http://hdl.handle.net/11427/42378en_ZA
dc.identifier.chicagocitationLouw, Gerhard. <i>"Internally generated intangible assets the vaccine for UK listed finance industry financial contagion?."</i> ., University of Cape Town ,Faculty of Commerce ,College of Accounting, 2025. http://hdl.handle.net/11427/42378en_ZA
dc.identifier.citationLouw, G. 2025. Internally generated intangible assets the vaccine for UK listed finance industry financial contagion?. . University of Cape Town ,Faculty of Commerce ,College of Accounting. http://hdl.handle.net/11427/42378en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Louw, Gerhard AB - Context: Internally generated non-capitalised intangible assets (IGNIAs) are not included in companies' balance sheets per international accounting standards, as they do not contribute to providing firms with resilience during crises. However, some companies gain a competitive advantage by continuously investing in IGNIAs , which management and investors should prioritize to foster resilience during unforeseen crises. Purpose: This study aims to determine whether investment in IGNIAs provided resilience, proxied by Return on Assets (ROA), during the COVID-19 crisis for 257 UK- listed finance firms from 2016-2023. The focus is on the UK finance industry due to its significant role in global financial contagion during crises. Research Design: This study used quantitative methods, employing firm-specific variables to test the hypotheses developed from existing theories. A longitudinal design was used with cross-sectional data from various firms in the finance industry. The study reviewed the relationship between UK finance firms' investment in IGNIAs and their resilience. It compared the resilience of firms that invested more in IGNIAs before the COVID-19 crisis to those that invested less, to determine if these assets contributed to their resilience. Main Findings: The study did not find a statistically significant relationship between investment in IGNIAs and resilience measured by ROA for the entire sample of 257 UK finance firms from 2016-2023. However, a somewhat statistically significant relationship was found between IGNIAs and resilience in the financial services industry only after the COVID-19 pandemic period, 2020-2023. Contribution: This study provides insights into the importance of IGNIAs in fostering resilience, especially for the finance industry, and contributes to the ongoing debate on whether these intangible assets should be included in firms' balance sheets. It highlights the need for industry-specific measures to resolve the contentious issue of capitalising IGNIAs.Recommendations and Implications: Management should prioritise continuous investment in IGNIAs to foster resilience and provide protection against unforeseen market crises. Standard-setting bodies should reconsider disclosing IGNIAs, as they are important factors for investors to consider when making informed investment decisions. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Intangible Assets KW - Resilience KW - UK Finance industry KW - Capitalising intangible assets KW - Financial Contagion KW - Financial Crises KW - Financial Stability KW - Continuous investment in intangibles KW - Management control over intangibles LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Internally generated intangible assets the vaccine for UK listed finance industry financial contagion? TI - Internally generated intangible assets the vaccine for UK listed finance industry financial contagion? UR - http://hdl.handle.net/11427/42378 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42378
dc.identifier.vancouvercitationLouw G. Internally generated intangible assets the vaccine for UK listed finance industry financial contagion?. []. University of Cape Town ,Faculty of Commerce ,College of Accounting, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42378en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentCollege of Accounting
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectIntangible Assets
dc.subjectResilience
dc.subjectUK Finance industry
dc.subjectCapitalising intangible assets
dc.subjectFinancial Contagion
dc.subjectFinancial Crises
dc.subjectFinancial Stability
dc.subjectContinuous investment in intangibles
dc.subjectManagement control over intangibles
dc.titleInternally generated intangible assets the vaccine for UK listed finance industry financial contagion?
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
thesis_com_2025_louw gerhard.pdf
Size:
1.58 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.72 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Masters