Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/126555
Authors: 
Crass, Dirk
Czarnitzki, Dirk
Toole, Andrew A.
Year of Publication: 
2016
Series/Report no.: 
ZEW Discussion Papers 16-004
Abstract: 
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.
Subjects: 
Brand Equity
Firm Profitability
Intellectual Property Rights
Trademarks
JEL: 
O31
O34
Document Type: 
Working Paper

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