The influence of brands and images on the financial performance - An empirical investigation of the EuroStoxx 50

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Part I. Intangible assets.
• Definition, facts and problems of intangibles
• Definition of intangible assets
• Facts, problems and chances of intangibles
• Definition and accounting of brand values
• Definition of brand value
• Accounting abilities of brand values
• Accounting according to IFRS
• Accounting according to US-GAAP
• Conclusion and outlook
• Brand valuation methodologies
• Interbrand
• BBDO
• Chances and limitations of the approach by BBDO
• Existing empirical evidence
• Investigation on the basis of non-financial factors
• Market-to-book (MB) ratio as indicator
• Analysis by the Interbrand list
• Study based on different influence factors
• Part II. Investigation of the relationship between brand value and financial performance
• Empirical analysis
• Goal of the present empirical investigation
• Methodology and Data
• Development of the brand value
• Performance measurement without systematic risk
• The Model
• Results
• Portfolio 1
• Portfolio 2
• Portfolio 3
• Portfolio 4
• Portfolio 5
• Summary and interpretation of the results
• Information criteria
• Statistical tests
• T-test
• Tests for heteroskedasticity
• White test
• Autoregressive conditional heteroskedasticity (ARCH)
• Tests for autocorrelation

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis examines the influence of brands and images on the financial performance of companies listed on the EuroStoxx50 index. The work focuses on identifying the relationship between brand value and financial performance, taking into account the impact of intangible assets. It aims to provide a comprehensive understanding of the role of brands in shaping corporate profitability and success.

• The importance of intangible assets in modern business
• The role of brand value in driving financial performance
• The relationship between brand image and corporate profitability
• The application of different brand valuation methodologies
• Empirical analysis of the impact of brands on financial performance

Zusammenfassung der Kapitel (Chapter Summaries)

The thesis begins with an introduction to the concept of intangible assets, particularly focusing on brand value. Chapter 1 defines intangible assets and explores their challenges and opportunities. Chapter 2 discusses the definition and accounting of brand values, including the accounting principles of IFRS and US-GAAP.

Chapter 3 delves into the different methodologies used for brand valuation, examining the approaches of Interbrand and BBDO. Chapter 4 reviews existing empirical evidence on the relationship between brand value and financial performance. This chapter discusses studies based on non-financial factors, market-to-book ratios, the Interbrand list, and various influence factors.

The second part of the thesis focuses on the empirical investigation. Chapter 1 outlines the goal of the investigation, methodology, data, and the development of brand value. It then explores performance measurement without systematic risk and introduces the model used for analysis.

Chapter 2 presents the results of the empirical investigation, analyzing five different portfolios of EuroStoxx50 companies. The analysis includes discussions on summary statistics, statistical tests, and information criteria. Chapters 3 and 4 focus on summarizing and interpreting the results, highlighting key findings and their implications.

Schlüsselwörter (Keywords)

This study focuses on key terms such as intangible assets, brand value, financial performance, EuroStoxx50, brand valuation methodologies, empirical analysis, and statistical tests. It explores the relationship between brand image and corporate profitability, aiming to provide insights into the impact of intangible assets on financial performance.

Frequently Asked Questions

Is there a connection between brand value and financial performance?

The thesis conducts an empirical investigation of EuroStoxx 50 companies to determine if a high brand value correlates with better stock performance and corporate profitability.

What are intangible assets and why are they important?

Intangible assets include non-physical assets like brand value, patents, and reputation. Since the 1990s, they have grown to account for over 80% of a company's total value, though only a small portion is recorded in traditional accounting.

Which brand valuation methodologies are discussed?

The paper examines methodologies used by famous consultancies such as Interbrand and BBDO, highlighting their different approaches and limitations.

How are brand values accounted for under IFRS and US-GAAP?

The thesis explores the accounting abilities and rules for intangible assets according to International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US-GAAP).

Which European companies are mentioned regarding high brand value?

Key examples include Nokia (as a top European brand) and German companies like Mercedes, BMW, SAP, Siemens, Volkswagen, Adidas, Audi, Porsche, and Nivea.

What statistical tests were used in the investigation?

The analysis utilizes T-tests, tests for heteroskedasticity (White test, ARCH), and tests for autocorrelation to ensure the validity of the empirical results.