The Dynamic Relationship between Investments in Brand Equity and Firm Profitability : Evidence Using Trademark Registrations
Most marketing practitioners and scholars agree that marketing assets such as brand equity significantly contribute to a firm's financial performance. In this paper, we model brand equity as an unobservable stock that results from up to thirty years of past brand-related investment flows. Using firm-specific trademarks as investment proxies, our results show a significant long-run impact on financial performance. The dynamic profile of brand-related investments has an inverted-U shape that reaches its peak after eleven years. On average, it takes four years before brand related investments show a positive return, and investments older than nineteen years show no significant impact. For the median trademarking firm, brand equity contributes 265,000 Euro to annual profits
Year of publication: |
2016
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Authors: | Crass, Dirk |
Other Persons: | Czarnitzki, Dirk (contributor) ; Toole, Andrew A. (contributor) |
Publisher: |
[2016]: [S.l.] : SSRN |
Subject: | Markenimage | Brand image | Markenführung | Brand management | Markenrecht | Trademark law | Rentabilität | Profitability | Unternehmenserfolg | Firm performance |
Saved in:
freely available
Extent: | 1 Online-Ressource (35 p) |
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Series: | |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 4, 2016 erstellt |
Other identifiers: | 10.2139/ssrn.2758688 [DOI] |
Classification: | O31 - Innovation and Invention: Processes and Incentives ; O34 - Intellectual Property Rights: National and International Issues |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012995473