Impact of Brand Investment on the Future Financial Health of Companies

Document Type : Original Article

Authors

1 Master of Accounting, Islamic Azad University, Tehran South Branch, Iran

2 Assistant Professor of Accounting, Islamic Azad University, Tehran South Branch, Iran

3 Assistant Professor of Management, Islamic Azad University, Tehran South Branch, Iran

Abstract

The brand is one of the main issues posed by the strategy of an enterprise. Firms carry out large and long-term investments for their brand, especially in advertising, sales and packaging. They know that a strong brand of business brings loyalty to customers and strong and powerful markets.  The main purpose of this research is to determine the impact of brand investment on the financial health of Companies. In this regard, the present paper explains how investment in a brand would affect the ratio of liquidity, debt ratio, market value and economic value added. The present research is based on the applied objective and based on descriptive - causal method. The research has been tested through multivariate regression and through the results of the econometric model. The statistical sample of this study is 107 companies listed in the Tehran Stock Exchange between 2007 and 2016. The research findings indicate that between investing in brand names in companies, with a ratio of liquidity, debt ratio, market value, and there is a significant relationship between economic value added.

Keywords

Accounting and Auditing Research
Volume 12, Issue 47
October 2020
Pages 171-184

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