The effect of brand value on corporate revenue and corporate value

Abstract

One of the major challenges for managers is the effect of brand on sales and stocks of their organization. Valuation of the brand of product and service and the link between investment in the brand and financial return has been topics of the interest in business for the last decade. Therefore, different brand valuation and ranking techniques has been proposed. In this research, we applied a new corporate brand valuation tool to minimize the subjective aspects of current brand valuation techniques as named Corporate Brand Success Valuation (CBS Valuation) that uses an integrative approach that takes into account three important concepts of business administration- marketing, finance, and accounting to measurement of corporate brand value. The sample data contains 82 active corporations listed on Tehran Stock Exchange that used for examining of relationship between CBS values of brand and corporate revenues and corporate value. The correlation coefficients revealed a significant relationship between CBS values of brand and corporate revenues and corporate value.

Keywords

• corporate brand valuation
• corporate brand ranking
• enterprise revenue
• enterprise value