The Impact of Brand Equity on Financial Performance: Normal vs. Distressed Time Periods
Presentation
Overview
Overview
Description
Marketing executives are increasingly held accountable for showing how marketing expenditures add to shareholder value, i.e. expenditures on marketing activities such as advertising, social media, promotion, sales force, etc. More specifically, marketing executives are asked to link the effects of these marketing activities on brand value (brand equity) and subsequent financial performance results. However, many marketing researchers have argued that this link or chain of marketing productivity is difficult to establish.
The focus of this paper will be to bridge at least one gap in the chain, the impact of brand equity on financial performance, e.g., share price, ROA, ROS, beta, etc Specifically, we will investigate these relationships before and after the current economic downturn as symbolized by the collapse of Lehmann Brothers in September 2008. The main research question (RQ1) will focus on the ability of a portfolio of firms with strong brands to deliver greater returns with less risk than relevant benchmark portfolios. We will also investigate whether high brand equity firms can sustain superior financial performance over time (RQ2). Finally, we will reassess RQ1 for time periods before and after the Lehmann Brothers collapse (RQ3).
