An Empirical Study: Brand Effects on Companies' Performance

Abstract

In recent years, it is recognized that intangible assets are important. This paper deals with brands out of the intangible assets and tries to make clear process in which the brand affects companies' performance. As the brand effects, I choose seven marketing advantages and carried out a survey by sending questionnaires to listed Japanese companies. I did covariance structure analysis on the brand effects on financial performance of the companies of which names are disclosed in the survey. The analysis shows that there is a positive relation between the brand effects and the companies' performance. The brand affects companies' financial performance through the brand effects.