The Impact of IP Holdings of Listed Gaming Companies on Investment Efficiency

Abstract

Recent years, the game industry has developed continuously. Game Intellectual Property (IP), as an important element in the game, has a very high popularity in the market, which has attracted more and more companies to concentrate on game IP for investment. However, there is a lack of multi-dimensional empirical research on the impact of game IP holdings on the investment efficiency of enterprises. It is found that the positive impact of IP holdings on inefficient investment has not passed the significance test, indicating that simply increasing the scale of IP holdings cannot significantly aggravate or alleviate the problem of inefficient investment; Enterprise growth has a significant inhibitory effect on inefficient investment, and high-growth enterprises are more likely to realize rational allocation of resources. This paper proves that it is difficult to convert the value of game IP into investment income alone, and blindly hoarding IP can easily lead to information asymmetry and aggressive investment by management, which in turn leads to resource mismatch. Learning the results of enterprise IP investment through this empirical analysis can improve the vigilance of enterprises against IP bubble, which can help to avoid blind investment in IP and turn their investment eyes to other sustainable growth points.