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Brand valuation – examining the role of marketing on firm financial performance

B. Rajesh Kumar (Institute of Management Technology, Dubai, UAE)
K.S. Sujit (Institute of Management Technology, Dubai, UAE)
Waheed Kareem Abdul (Institute of Management Technology, Dubai, UAE)

Measuring Business Excellence

ISSN: 1368-3047

Article publication date: 6 September 2019

Issue publication date: 18 February 2020

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Abstract

Purpose

The purpose of this study is to broadly examine the role of marketing–finance interface factors for value creation. Specifically, the study investigates the influence of discretionary expenditures such as advertisement on valuation of brands and firms within the framework of risk factors.

Design/methodology/approach

To test the model and hypotheses of this study as it has the possibilities of multiple causations among different variables used in the system. Some independent variables are not truly independent and there is a possibility of biased estimation and inconsistent results. Hence a dynamic simultaneous equation model is used including the instrumental variable approach.

Findings

The study provides evidence for direct association between brand value and firm value which is represented by the joint impact of both operating and stock market performance. The results establish the direct relationship between brand and firm value and signify the relevance of intangible value creation.

Originality/value

This study addresses the gap in the research which examines the role of marketing decisions on value creation which jointly impacts both operating and stock market performance.

Keywords

Acknowledgements

Erratum: It has come to the attention of the publisher that the article Kumar, B., Sujit, K. and Kareem Abdul, W. (2019), “Brand valuation – examining the role of marketing on firm financial performance”, published in Measuring Business Excellence, the affiliations for all authors was previously incorrect. The correct affiliation should be Institute of Management Technology, Dubai, UAE. The publisher sincerely apologises for these errors and for any inconvenience caused.

Citation

Kumar, B.R., Sujit, K.S. and Kareem Abdul, W. (2020), "Brand valuation – examining the role of marketing on firm financial performance", Measuring Business Excellence, Vol. 24 No. 1, pp. 90-113. https://doi.org/10.1108/MBE-01-2019-0007

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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