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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).

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.

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.

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.

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.

Managers face the challenge of balancing resources needed to support value creation and value appropriation. In this study the authors analyze the impacts of innovation investments (i.e. value creation: VC) on advertising expenditures (i.e. value appropriation: VA), and vice versa, and verify the effects of these options on short- and long-term performance.

The effects of these two activities on short- and long-term performance were analyzed observing a panel of 4,090 companies of Standard and Poor's Compustat database from a 40-year period. The authors adopted the panel vector autoregressive (VAR) approach, using the generalized method of moments (GMM).

Although there is a trade-off between the strategic emphases on creating and appropriating value, there is also a synergy between them. The results from the impulse response functions support the argument for a virtuous business circle: companies that choose to intensify their investments in R&D tend to increase advertising expenditures, and vice versa.

Managers, rather than having to deal with a trade-off between allocating resources either on VC or VA activities, can capitalize on synergetic benefits resulting from the interaction among them.

The relationship between the VC and VA activities transcends the trade-off imposed by resource restrictions, since the interaction between them creates additional benefits afforded by the synergy of these activities.

Although brand equity (BE) is a widely accepted concept, its definition is still elusive, and researchers have not reached a consensus about which measures provide the best estimates of this complex and multi-faceted construct. Hence, the authors propose a BE chain that incorporates consumer-based BE (CBBE) and firm-based BE (FBBE) measurement approaches, advocating in favor of a holistic approach and encouraging theoretical and empirical studies that assess the BE chain.

The methodology entailed an extensive literature review on the subject. The authors included many different sources and the most accepted ones for measuring CBBE and FBBE.

The authors present 10 propositions to build the BE chain, encompassing the different approaches of BE and including its antecedents and consequences.

Conceptualizing BE is a complex problem given the different viewpoints describing several aspects of this intangible marketing asset. Thus, this study aims to foster discussions about such viewpoints and provide a framework to support the sedimentation of BE conceptualization.

The purpose of this paper is to explore the differences and similarities between two methods/models for estimating customer equity (CE): one using behavior-based data and one using market-based data.

Two separate analyses of the same market scenario (telecom industry) were conducted, by applying the CE estimation method from Rust et al. (2004) and the CE model from Gupta et al. (2004).

Different methods/models can produce similar estimates, which corroborates the defense of an integrated multi-method approach to evaluating CE. In addition, they each provide different benefits. The behavioral data model provides identification of CE drivers and assists in the task of marketing resource allocation, the market-based data model is simple and easy to implement and is recommended in cases when CE is used as a financial indicator.

This paper contributes to the CE literature in the following ways. First, it demonstrates the possibility of obtaining similar estimates of CE using distinct types of data and data collection procedures, and with two different estimation methods/models. Second, it confirms that either model allows firms to compute the expected market capitalization at any given time using customer and financial information. Third, it demonstrates the convergent validity of these two methods/models for estimating CE for either public or private companies, thus legitimizing the comparison of their respective CE values, regardless of the type of source data or estimation formula used.

This study aims to compare the performance of stocks of companies with high brand equity with the stocks of other companies listed on the stock market of emerging countries of Latin America: Brazil, Chile, Colombia, Mexico and Peru.

The valuable brands (brands with high brand equity) considered were the most valuable Latin America brands according to the Millward Brown reports. Carhart four-factor model was used to analyze performance and the total sample included 732 stocks in the Latin American market collected at Economatica, monthly, for a period of 10 years.

The Valuable Brands Portfolio presents the lowest investment risk, suggesting that stocks of companies with valuable brands ensure lower risk investment to shareholders in these emerging markets.

This study is the first to associate brand equity with the creation of shareholder value in the context of emerging Latin American countries. In addition, the proposed method has also not been used previously to study emerging countries. The association found between a marketing asset (brand equity) and stock market performance contributes to improve the relationship between marketing and finance areas. The results of this study in emerging markets corroborate previous studies in developed markets, strongly suggesting the confirmation of the effect of brand equity on the reduction of risk stock.