Marketing Accountability of Korea Corporate: The Relationship between Branding Investments and Financial Performance

摘要

Brand equity is one of the most valuable assets of a firm and is considered to be a growth engine as it may have potential of lasting effects on the firm's performance and value. The purpose of this paper is to estimate intangible assets which are based on the financial market value of the firm, and to derive brand equity and R&D equity from the intangible assets, following Simon and Sullivan's study (1993). This approach is tailored to approximate the characteristics of Korean industrial structure and to reflect the time period of global financial period (2005-2010). A sample 514 firms on the Korean Stock Exchange listing (i.e. KOSPI and KOSDAQ) from 17 different industries are selected in order to evaluate brand equity and R&D equity. Our study demonstrates that intangible assets can be broken down to two types of equities and the distinctive characteristics of South Korean firms and industries are methodically reflected in the findings.