Review of Accounting Studies

, Volume 3, Issue 1, pp 41–68

Brand Values and Capital Market Valuation

  • Mary E. Barth
  • Michael B. Clement
  • George Foster
  • Ron Kasznik

DOI: 10.1023/A:1009620132177

Cite this article as:
Barth, M.E., Clement, M.B., Foster, G. et al. Review of Accounting Studies (1998) 3: 41. doi:10.1023/A:1009620132177


Brand value estimates are significantly positively related to prices and returns, incremental to accounting variables. Questionable brand value estimate reliability underlies lack of financial statement recognition for brands. Findings suggest estimates are relevant and sufficiently reliable to be reflected in share prices. Simultaneous equations estimation reveals inferences are unaffected by potential bias resulting from simultaneity between brand value estimates and equity market value. Brand value estimates are positively associated with advertising expense, operating margin, and market share. Yet, brand value estimates provide significant explanatory power for prices incremental to these variables, and to recognized brand assets and analysts earnings forecasts.

Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Mary E. Barth
    • 1
  • Michael B. Clement
    • 2
  • George Foster
    • 3
  • Ron Kasznik
    • 4
  1. 1.Graduate School of BusinessStanford UniversityUSA
  2. 2.College of Business AdministrationUniversity of Texas at AustinUSA
  3. 3.Graduate School of BusinessStanford UniversityUSA
  4. 4.Graduate School of BusinessStanford UniversityUSA

Personalised recommendations