The dynamic relationship between investments in brand equity and firm profitability : evidence using trademark registrations
Dirk Crass, Dirk Czarnitzki and Andrew A. Toole
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: |
January 2016
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Authors: | Crass, Dirk ; Czarnitzki, Dirk ; Toole, Andrew A. |
Publisher: |
Mannheim : ZEW, Centre for European Economic Research |
Subject: | Brand Equity | Firm Profitability | Intellectual Property Rights | Trademarks | Immaterialgüterrechte | Intellectual property rights | Markenrecht | Trademark law | Markenimage | Brand image | Rentabilität | Profitability | Markenführung | Brand management | Unternehmenserfolg | Firm performance | Markenartikel | Brand |
Saved in:
freely available
Extent: | 1 Online-Ressource (32 Seiten) Illustrationen |
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Series: | ZEW discussion papers. - Mannheim : ZEW, ZDB-ID 2125128-9. - Vol. no. 16-004 |
Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature |
Language: | English |
Other identifiers: | hdl:10419/126555 [Handle] |
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/10011418793