Do Brands Matter in Unlisted Firms? An Empirical Study of the Association between Brand Equity and Financial Performance

Anne Schmitz and Nieves Villaseñor-Román
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Anne Schmitz: Marketing Department, Autonomous University of Madrid, 28049 Madrid, Spain
Nieves Villaseñor-Román: Marketing Department, Autonomous University of Madrid, 28049 Madrid, Spain

Administrative Sciences, 2018, vol. 8, issue 4, 1-12

Abstract: In spite of the importance of the brand management in marketing studies and practice, there is a scarcity of prior research on the links between brand equity and financial performance, particularly in unlisted (unquoted) firms. The study contributes to prior research along a number of dimensions. It provides evidence on the relevance of brands for unlisted firms of several industries, by showing that brand equity is associated with financial performance even in non-quoted firms without world-recognized brands. Second, the study analyzes the association between brands and accounting-based measures of performance, across different windows and financial indicators. Finally, the evidence on earnings persistence is particularly relevant, as it potentially sheds light on the existing debate on the association between brand equity and stock markets. To the extent that firms with greater brand equity have more persistent earnings, current earnings contain greater information about future earnings, which show the relevance of brand management in the strategic planning of unlisted firms.

Keywords: brand equity; financial performance; unlisted firms; earnings (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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