Intangibles, Export Intensity, and Company Performance in the French Wine Industry

Abstract

Intangible assets can play a strategic role in the implementation of differentiated strategies in foreign markets. The literature has addressed the impact of intangible assets on both exports and financial performance and the effects of exports on company financial performance (profit and risk). This article aims to analyze the effect of exports on the relationship between intangibles and company performance in the wine industry. Empirical studies show that intangibles have a positive but diminishing impact on exports. The effect of exports on financial performance differs depending on whether we consider corporations or cooperatives. While intangible expenses reduce company risk in both samples whatever the level of export intensity, the effects are different with profit. In corporations, intangible expenses have a positive impact on profit only when there is a high level of expenses and a high level of export intensity. (JEL Classifications: G32, L25, Q12, Q13)

Firm Performance and Exports: Evidence from the Romanian Wine Industry

“…For example, by analyzing the French wine industry, Viviani (2009) finds that exports positively influence financial performance, but through the intangible expenses directly connected with companies’ profit and risk. Similar results are put forward by Amadieu, Maurel, and Viviani (2013), also for France. They show that exports improve financial performance, but the intensity of the effect depends on whether the wine producer is a corporation or a cooperative.…”

Cooperatives versus Corporations: Survival in the French Wine Industry

“…Consequently, cooperatives’ export performance remains low. Amadieu, Maurel, and Viviani (2013) suggest that cooperatives have a “defensive” vision of exporting and do not invest many resources into it. Our results support these previous findings.…”

“…Hanf and Schweickert (2014) conclude that cooperatives have a lot of work to do to convey the benefits of intangible investments to their members. Amadieu, Maurel, and Viviani (2013) examine the relationship between exports and intangibles on the one hand, and company performance in the French wine industry on the other hand. However, they find no significant results for cooperatives due to their low level of exports.…”

Learning Your Options: Option-Based Model of Export Readiness and Optimal Export

“…Different accounting treatment and, as a consequence, different tax treatment dictates a recorded split of intangible assets and, for our purposes, obscures the economic picture that could be tested. If the intangible assets are estimated from the split of associated costs analyzing financial information of a company, it is easier to test a positive relationship between an investment in intangibles and export intensity [ 21 , 22 , 23 ], but it ignores the fact that a lot of things cannot be priced and are not charged for. Management motivation would be one example.…”