Universität zu Köln

Fischer, Marc and Himme, Alexander ORCID: 0000-0001-6256-7529 (2017). The financial brand value chain: How brand investments contribute to the financial health of firms. Int. J. Res. Mark., 34 (1). S. 137 - 154. AMSTERDAM: ELSEVIER. ISSN 1873-8001

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Abstract

Marketing and finance executives follow different objectives and focus on different stakeholder groups. Marketers want to create sales impact. Finance executives are concerned about the financial health of the firm. As a result, both worlds tend to be rather disconnected in their daily business. We argue that this does not reflect the dynamics of the firm where important marketing and financial metrics in fact interact. As long as marketing and finance officers do not fully appreciate the interplay of their key metrics, their decisions are likely to be suboptimal. This article proposes a simultaneous equation model that reflects the interaction of marketing and finance-domain variables in the value creation process. We focus on brand-building activities and the attraction of capital as major tasks of marketing and finance officers. Our model shows how advertising and other investments increase customer-based brand equity (CBBE) that in turn impacts financial leverage and credit spread and ultimately elevates the level of financial resources. Based on a broad sample of 155 firms covering various B2C industries, we test for the empirical relevance of our model. We also assess the practical significance of our results by transforming them into elasticities. Our results suggest that marketing and finance executives need to consider the dynamic interaction of their decision and performance variables to fully evaluate the effects of their decisions on the firm's financial health. (C) 2016 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Fischer, Marc UNSPECIFIED UNSPECIFIED UNSPECIFIED Himme, Alexander UNSPECIFIED orcid.org/0000-0001-6256-7529 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-239046
DOI:	10.1016/j.ijresmar.2016.05.004
Journal or Publication Title:	Int. J. Res. Mark.
Volume:	34
Number:	1
Page Range:	S. 137 - 154
Date:	2017
Publisher:	ELSEVIER
Place of Publication:	AMSTERDAM
ISSN:	1873-8001
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CAPITAL STRUCTURE; MARKETING-STRATEGY; SHAREHOLDER VALUE; IMPACT; PERFORMANCE; CORPORATE; ATTITUDE; QUALITY; METRICS; EQUITY Multiple languages Business Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/23904