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Brand equity and company performance: evidence from a quasi-experiment in an emerging market

Marta Olivia Rovedder de Oliveira (Departamento de Ciências Administrativas, Programa de Pós-Graduação em Administração, Centro de Ciências Sociais e Humanas, Universidade Federal de Santa Maria, Santa Maria, Brazil)
Igor Bernardi Sonza (Departamento de Ciências Administrativas, Programa de Pós-Graduação em Administração, Centro de Ciências Sociais e Humanas, Universidade Federal de Santa Maria, Santa Maria, Brazil)
Tamires Silva da Silva (Departamento de Ciências Administrativas, Universidade Federal de Santa Maria, Santa Maria, Brazil)

Marketing Intelligence & Planning

ISSN: 0263-4503

Article publication date: 30 March 2023

Issue publication date: 9 May 2023

335

Abstract

Purpose

Marketing and brand managers are under more pressure than ever before to demonstrate the impact of the managers' strategies and actions on company value, especially in an emerging market. In this context, the authors investigate the relationship between brand equity and company performance using the rankings of most valued brands from Brand Finance (BF), Brand Analytics (BZ) and Interbrand (IB).

Design/methodology/approach

The authors use used a panel from the period between 1990 and 2018 (29 years), consisting of a sample of 689 companies with shares traded in an emerging market representing 7,970 observations with unbalanced data. The authors applied a dynamic Differences-in-Differences Ordinary Last Squares (DID OLS) method.

Findings

The main finding of this study is that brands ranked as valuable significantly increased the brands' companies' intangible assets, return on assets, free cash flow (FCF) and market value.

Research limitations/implications

The present study helps brand and marketing managers show to chief executive officers (CEOs) and shareholders the importance of brand development. In addition, valuable brand companies of an emerging market may represent an interesting opportunity for market investors.

Originality/value

This study contributes to the marketing literature, addressing the fields of marketing and finance, by analyzing the performance of companies separately over a long period, with different metrics, an unconventional model in the marketing area and different rankings of valuable brand names.

Keywords

Acknowledgements

The authors thank the financial support from National Council for Scientific and Technological Development – CNPq (Edital Universal) for the development of this research.

Citation

Oliveira, M.O.R.d., Sonza, I.B. and da Silva, T.S. (2023), "Brand equity and company performance: evidence from a quasi-experiment in an emerging market", Marketing Intelligence & Planning, Vol. 41 No. 4, pp. 393-408. https://doi.org/10.1108/MIP-12-2021-0452

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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