Joint Effect of Brand Value and Advertising on Operating Cash Flows in the Automotive and Components Manufacturing Companies

Samane Ghasemi, Mohammad Hamed Khanmohammadi, Hamid Reza Mostafaei

Abstract


According to the fact that most advertising and marketing costs are not measurable through financial performance, for this reason, understanding dedicated brand value and the consequences of advertisement are so important to focus on investing in branding and marketing. This quantitative research sought to understand the common effect of brand value and cost of advertising on financial performance (Operating cash flows) companies in the automotive and components construction. The theoretical framework of the resource considers resource-based view and expresses intangible assets of a company has a positive relationship with keeping the company competitive advantage. The key research question includes the joint effect of brand value and cost of advertising on operating cash flows. Information about the research project is including the cost of advertising and brand value of 5 companies listed in Tehran Stock Exchange from 2006 to 2015, as well as information related to operating cash flows has been extracted from the financial statements. The results of this study indicated that the dependent variable (Operating cash flows) and the joint effect of brand and advertising are related.

Full Text:

PDF 50-56

References


Aaker, D. A. (2009). Managing brand equity: Simon and Schuster.

Barth, M. E., Clement, M. B., Foster, G., & Kasznik, R. (1998). Brand values and capital market valuation. Review of Accounting Studies, 3(1-2), 41-68.

Chin, C., Tsao, S., & Chi, H. (2005). Trademark value and accounting performance: Analysis from corporate life cycle. Journal of American Academy of Business, 7(1), 106-112.

Dani, M., & Sterner, J. (2017). Management & Valuation of Intangible Assets in Swedish Holding Companies: An integrative model on how Swedish holding companies assess, evaluate and manage their intangible assets to maintain old and create new knowledge within their subsidiaries: Jönköping International Business School.

Dixon, M., Freeman, K., & Toman, N. (2010). Stop trying to delight your customers. Harvard business review, 88(7/8), 116-122.

Egan, J. (2007). Marketing communications: Cengage Learning EMEA.

Hatch, M. J., & Schultz, M. (2001). Are the strategic stars aligned for your corporate brand. Harvard business review, 79(2), 128-134.

Herremans, I. M., Ryans Jr, J. K., & Aggarwal, R. (2000). Linking advertising and brand value. Business Horizons, 43(3), 19-19.

Kallapur, S., & Kwan, S. (2000). The value relevance of brand assets recognized by UK firms.

Keller, K. (2013). Strategic brand management: Global edition: Pearson Higher Ed.

Keller, K. L. (2016). Reflections on customer-based brand equity: perspectives, progress, and priorities. AMS review, 6(1-2), 1-16.

Leone, R. P., Rao, V. R., Keller, K. L., Luo, A. M., McAlister, L., & Srivastava, R. (2006). Linking brand equity to customer equity. Journal of service research, 9(2), 125-138.

Lin, X., Belo, F., & Vitorino, M. A. (2012). Brand capital and firm value.

Myers, C. A. (2003). Managing brand equity: a look at the impact of attributes. Journal of product & brand management, 12(1), 39-51.

Schultz, D. E. (2002). The new brand value. Marketing Management, 11(4), 8.

Seethamraju, C. (2003). The value relevance of trademarks. Intangible assets: Values, measures, and risks, 228-247.

Wood, L. (2000). Brands and brand equity: definition and management. Management decision, 38(9), 662-669.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

World of Researches Publication