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The aim of this paper is to show how a bank's brand value is quantitatively assessed using the Interbrand methodology, taking into account the specifics of the banking market. Therefore, the objective of this paper is to review the ways in which brands contribute to the higher market value of banks by strengthening intellectual capital (IC), as reflected in increased levels of competitiveness and the reputation that the bank maintains in the minds of customers.

This paper applies the Interbrand methodology, which indicates that the assessment of brand value implies the determination of economic profit as the difference between the net operating profit after tax and the cost of capital. The brand profit is then calculated as the product of the economic profit and the index of the brand role. Brand value is obtained as the product of the brand's profit and the discount rate of the brand. In order to further test the results obtained through the application of the Interbrand methodology, linear regression was applied to the panel data in order to provide more efficient econometric estimates of the model parameters.

This research has shown that the Interbrand methodology's empirical foundations lie in the Montenegrin banking market, but also that, out of all of the analyzed parameters, the greatest significance is obtained from the profit of the brand, which influences the value of bank brands.

This research is related to the service sector–in this case, financial services – meaning that it is necessary to adjust the calculation of the weighted average cost of capital. Although the banking sector is a very competitive market, a limitation exists in the fact that the research was conducted only in Montenegro. In other words, in order to achieve a more detailed analysis, this methodology should be applied to more countries, such as those within the Western Balkans, as they have a relatively similar level of development.

A main contribution of this paper is that the assessment of the banks' brand value could be useful to future investors. Therefore, the improvement of the financial sector–in this case, banks–as institutions that hold a dominant position in the financial market in Montenegro, is a particularly important issue. It is important to point out that the research conducted could serve as a means by which to bridge the gap between theory and practice, since the methodology of the consulting company Interbrand has been optimized and adjusted to the Montenegrin banking market.

On considering the fact that most countries of the Western Balkans are at a similar level of development, the authors can conclude that, with the help of this adapted form of methodology, this research can be applied to assess banks' brand value in neighboring countries.

This paper serves as the basis for further research as the analysis of banking institutions that comprise both marketing and financial aspects, i.e. the application of the Interbrand methodology, was not conducted in Montenegro. Also, this paper overcomes the literal gap between theory and practice as there is little research thus far involving the application of the Interbrand methodology to the field of finance; especially in the field of banking. The authors point out the specifics of the banking sector as a key explanation for this. This is why it is necessary to make certain adjustments to the methodology. The research has positive implications for banks' internal and external stakeholders. The originality of this research is reflected in the fact that the Interbrand methodology has been optimized in order to assess the brand of banks, taking into account the specificity of the analyzed market. Brand is analyzed as a component of IC: another factor that exemplifies the value of this research.

The purpose of this paper is to evaluate the renaming effect of brand value of state‐owned corporations in Taiwan.

This study aims to evaluate and analyze the value of the CPC brand by: using the Interbrand and Hirose models, and analyzing empirically the difference‐comparison of the results.

For the state‐run corporations, the practical application of the Hirose and Interbrand models, the main target market, and the business orientation categories, which the corporations belonged to are illustrated in a two‐dimensional four‐quadrant framework.

This study presumes that Chinese Petroleum Corp. will be affected in various ways after being renamed CPC Corp., Taiwan, and the fluctuations in value will be reflected in related profit/cost data. It is also assumed that the brand will bring value to the company. However, there are constraints in doing this research despite the completeness and objectivity of the study subject.

Research on brand equity is still in a state of evolution. This study makes two major contributions. First, it suggests that choosing the more applicable valuation model depends on the enterprises' industrial characteristics. Second, the differentiation of the applications of brand value models is based on: the orientation characteristics of the various valuation models, the target markets, and business orientation.

The purpose of the this paper is to correct a deficiency in the published literature by examining the share price performance of firms that own high-value brands in uptrending, downtrending and sideways markets.

The authors examined stock price performance for an index of firms that owned brands in the Interbrand list of the “Best Global Brands” from 2001 through 2009 using the Fama-French method.

The authors’ index outperformed the Standard & Poor’s 500 when the market was up or downtrending, but not when it moved sideways.

The authors find that an index of firms that own the produced better returns than the Standard & Poor’s 500 market index. Owning highly valued brands may be a marketplace signal to the investing community regarding the firm’s management acumen.

Owning high-value brands seems to influence share price performance, a metric used to judge chief executive officers. Thus, brand investments align with the shareholders’ interest. The authors help alleviate the perception (Challagalla et al., 2014) that marketing managers make investments on an ad hoc basis.

For the first time, the authors evaluate the effect of owning one or more of the world’s most valuable brands on the market value of common stock using data from downtrending, uptrending and no-trend periods. This research is also among the first to introduce volatility into the Fama-French method and it is an important explanatory variable. This paper’s approach has interesting comparisons to other papers taking a similar analytical approach.

Both American and International Accounting Standards lead to the invisibility of most brand values in financial statements, as these standards recognize only those brands acquired externally either through a purchase or a merger. Nonetheless, over the last several decades, it has become increasingly evident that company value is primarily driven by intangible assets such as brands and other intellectual property. As such, in a knowledge-based economy, it is increasingly important for companies to develop these assets. Empirical evidence produced by prior research also demonstrates that brand values are market value relevant, that is, knowledge about their existence and value is important to investors. Consequently, and in tangent with the increased use of fair value measurements based on projected future cash flows, we argue in this chapter that it might be time to end the invisibility of brands.

This study aims to investigate the impact of strategic and institutional (normative) corporate social responsibility (CSR) on brand value and brand reputation, based on the strategic and legitimacy theory of CSR. It argues that because CSR strengths represent firms’ proactive approach to satisfy their stakeholders’ interests, the authors expect that this proactive approach is likely to generate an accumulated level of reservoir of goodwill that is positively related to the level of brand value. In contrast, the authors would expect that social irresponsibility (CSR concerns), as a measure of firms’ reactive position to stakeholders’ interests, adversely affects the incremental change in this reservoir of goodwill.

This paper measures strategic CSR using CSR strengths and normative (institutional) CSR from CSR concerns scores from the MSCI ESG (Kinder Lydenburg Domini). This paper measures the level of brand value from the Interbrand listing, and it measures the brand reputation based on changes in brand value and brand ranking from Interbrand’s 100 global brands.

This paper finds evidence to support the authors’ theory that one-, two- and three-year lagged CSR strengths positively affect the level of brand value. This study also finds empirical evidence to support the authors’ hypothesis that CSR concerns adversely affect changes in brand value and brand ranking. This study concludes that the differing impacts of CSR strengths and CSR concerns help the authors better understand the impacts of firms’ pro-action and reaction to stakeholders’ interests ion brand values and ranking.

The findings indicate that strategic CSR enhances brand value, while socially irresponsible activities that are against social norms, values and ethics adversely affect the companies’ legitimacy and adversely affect changes in brand reputation.

This research offers a new perspective to distinguish the differing impacts of CSR strengths and concerns on brand value and brand reputation.

This paper aims to offer a new perspective on increasing advertising effectiveness, testing the idea that the link between advertising expenditures and brand equity is greater when a company's consumer satisfaction ratings exceed those of their competitors than when such ratings trail those of competitors.

The study used published data for 27 companies and their competitors from 2001 to 2009, providing 182 observations for analysis using hierarchical linear modeling. Annual data on advertising expenditures (obtained from Compustat) for companies whose corporate names are synonymous with their brand (e.g. Apple, McDonald's, Nike) formed the basis for testing the proposition of interest. Yearly brand equity data obtained from Interbrand, and customer satisfaction (CS) ratings from the American Customer Satisfaction Index website were employed to test whether year‐over‐year increases in advertising expenditure resulted in increasing the value of the brand and whether this positive effect was accentuated when a company's CS ratings exceeded those of its competitors.

As expected, a year‐over‐year increase in advertising expenditures contributed to enhance brand equity, but this positive effect was significantly greater when a company's CS ratings trumped the CS ratings of its competitors as opposed to trailing them.

If a company trumps its competitors in CS ratings, it should consider spending more on advertising, because now their ad dollars have a bigger bang for the buck in contributing to enhance the value of the brand. A company trailing its competitors in CS ratings should consider taking funds from the advertising budget to remedy that disparity, whether by product improvements, sales training, customer service hires, or whatever seems needed. Not only can increasing CS make future ad dollars more effective, on the flip side, it can make competitors' ad dollars less so.

This study analyzes the relationship between the characteristics of social media content, customer engagement (CE) and brand equity and investigates whether these relationships differ between national cultures.

We collect data from a variety of sources, including Interbrand, Facebook and financial statements, to validate the research model using partial least squares structural equation modeling.

The results revealed that owned media content had a stronger positive effect on CE than did earned media content. In addition, information richness was found to have a positive effect on CE, but links to additional information had a negative effect. In addition, CE positively affected brand equity. The national comparison analysis revealed a difference in the coefficients between the United States and Korea for most paths.

This study contributes to the relevant literature by finding evidence that OM has a stronger effect on CE than does EM. In addition, this study expands the related literature by clarifying the effects of information richness in a CE context and exploring differences determined by cultural dimensions. Most importantly, this study expands CE and international marketing literature by finding that the relationship between CE determinants and outcomes in a social media environment differs between national cultures.

This study explores the relationship between CE and social media content, which has not been sufficiently investigated in previous studies, by collecting actual social media data. In addition, unlike previous survey-based studies, we find evidence that CE contributes to brand equity at a corporate level. Finally, our exploratory analysis indicates that the relationship between the characteristics of social media content, CE and brand equity differs between national cultures.

The purpose of this paper is to analyze the relationship between customer engagement in social media (CESM), brand equity and corporate performance and investigated whether these relationships differed according to cultural factors in the United States and South Korea.

We collected customer engagement on social media data on Facebook and brand equity data from Interbrand for listed companies in the United States and Korea. A total of 405 data sets were analyzed by partial least squares structural equation modeling (PLS-SEM).

Results revealed that CESM did not affect financial performance through a direct path but was found to have a positive indirect path via the mediation of brand equity. In addition, this relationship was found to differ between the United States and South Korea.

This study contributed to the literature on social media and international management by verifying the relationship between CESM, brand equity and financial performance, and by presenting exploratory research results to ascertain if these relationships differ according to the cultural dimension of the country.

Despite the significant investment in research on corporate social responsibility (CSR), there still exists a lack of clarity in terms of how different types of CSR activities lead to the outcomes a firm desires with their investment in CSR. The purpose of this paper is to provide greater insight on the relationship between types of CSR activities and brand equity (BE). The authors develop and test a conceptual framework, which examines the unique relationship between each CSR dimension and BE, as well as the interaction of product-related CSR activities and employee-related CSR activities with CSR activities across the other dimensions.

The authors collected data from multiple secondary sources, including Kinder, Lydenberg and Domini (KLD) Research and Analytics Inc., Interbrand, Compustat and CMR. The authors used random-effect estimations to estimate panel regressions of BE as a function of the different dimensions of a firm’s CSR, interaction terms between CSR dimensions and product quality and interaction terms between employee relations and other CSR dimensions, as well as a set of control variables and Year dummy variables.

Based upon a large-scale panel data set including 78 firms for the period of 2000–2014, the results show that diversity- and governance-related CSR have a positive effect on BE, employee-related CSR has a negative effect on BE and both product and employee dimensions play important roles in the relationships between other CSR dimensions and BE. These results have important implications for both theory and practice.

This study makes several contributions to extant literature on CSR and brand strength. First, this study examines the impact of CSR on BE vs alternative measures of brand-related outcomes. This study uses the KLD database to determine scores for firm CSR activity. It is the first to use the extensive KLD database to examine the relationship between types of CSR activities and BE. Last, this study seeks to better understand some of the organizational factors which influence the success of CSR outcomes. Specifically, the research will examine the interaction of product-related and employee-related CSR activities with CSR activities across the other dimensions.

The goal of this paper is to understand the relationship between advertising spending and the volume and valence of publicity, and assessments of corporate brands (opinion, value and reputation).

Two studies examine major multi‐national companies as brands by bringing together five unique industry datasets to understand the connection between the assessments of the corporate brand and marketing communication activity. Discriminant analysis is used to study the differential impact of advertising and publicity on corporate brand attitude and value.

Publicity and advertising volume are important drivers in differentiating between firms with lower and higher brand evaluations. Overall, publicity valence, in and of itself, had little effect outside of the volume of positive and negative stories. Further, the role of prior corporate reputation works in conjunction and has unique effects that influence the communication activities of firms with high and low brand attitudes and value. The valence of publicity matters least for firms with strong prior reputations. Instead volume dominates for these firms. For lower reputation firms, the mix of communication that distinguishes stronger and weaker performance is more complex with both publicity valence and publicity and ad volume playing slightly different roles in the two studies.

The findings suggest that companies with different levels of brand evaluation (opinion and value) have distinct marketing communication profiles which can be labelled communication footprints. Further, this relationship is moderated by prior corporate reputation. Firms seeking to change stakeholder evaluations must pay particular attention to both the overall volume of publicity received, as well as the ratio of positive to negative publicity volume. Advertising spending plays an important supportive role in these evaluations.

The study adds to the understanding of the communication signals that influence corporate branding. Specifically, it brings together a unique set of industry data to investigate the influence of marketing communication activities on brand opinion and value. Further, the findings contribute to the discussion of the role that company publicity and volume play in developing the corporate brand.