Financial value of brands in mergers and acquisitions: Is value in the eye of the beholder?

Journal of Marketing

Volumn 72, Issue 6, 2008, Pages 49-64

  Cem Bahadir, S ^a   Bharadwaj, Sundar G ^b   Srivastava, Rajendra K ^b  

^a UNIVERSITY OF SOUTH CAROLINA   (United States)

^b EMORY UNIVERSITY   (United States)

Author keywords

Brand equity; Brand portfolio; Brand valuation; Marketing capability; Mergers and acquisitions

Indexed keywords

EID: 57049099796     PISSN: 00222429     EISSN: None     Source Type: Journal    
DOI: 10.1509/jmkg.72.6.49     Document Type: Article

References (63)

1. Advertising Age (2006), "Confused? You Will Be: A Timeline of AT&T History," 77 (May), 81.
2. Ailawadi, Kusum L., Donald R. Lehmann, and Scott A. Neslin (2003), "Revenue Premium as an Outcome Measure of Brand Equity," Journal of Marketing, 67 (October), 1-17.
3. Ambler, Tim (2003), "Marketing: The Trouble with Finance," Business Strategy Review, 14 (3), 54-62.
4. -, and Patrick Barwise (1998), "The Trouble with Brand Valuation," Journal of Brand Management, 5 (May), 367-77.
5. -, C.B. Bhattacharya, Julie Edell, Kevin L. Keller, Katherine N. Lemon, and Vikas Mittal (2002), "Relating Brand and Customer Perspective on Marketing Investment," Journal of Service Research, 5 (1), 13-25.
6. Amit, Raphael and Paul Schoemaker (1993), "Strategic Assets and Organizational Rent," Strategic Management Journal, 14 (1), 33-46.
7. Atuahene-Gima, Kwaku (2005), "Resolving the Capability-Rigidity Paradox in New Product Innovation," Journal of Marketing, 69 (October), 61-83.
8. Barney, Jay B. (1986), "Strategic Factor Markets: Expectations, Luck, and Business Strategy," Management Science, 32 (10), 1231-41.
9. -, (1991), "Firm Resources and Sustained Competitive Advantage," Journal of Management, 17 (1), 99-120.
10. Barth, Mary and Greg Clinch (1998), "Revalued Financial, Tangible, and Intangible Assets: Associations with Share Prices and Non-Market-Based Value Estimates," Journal of Accounting Research, 36 (Supplement), 199-233.
11. Barwise, Patrick, Christopher Higson, Andrew Likierman, and Paul Marsh (1990), "Brands as 'Separable Assets,'" Business Strategy Review, 1 (2), 43-59.
12. Beckman, Christine and Pamela R. Haunschild (2002), "Network Learning: The Effects of Partners' Heterogeneity of Experience on Corporate Acquisitions," Administrative Science Quarterly, 47 (1), 92-124.
13. Bharadwaj, Anandhi S., Sundar G. Bharadwaj, and Benn R. Konsynski (1999), "Information Technology Effects on Firm Performance as Measured by Tobin's q," Management Science, 45 (7), 1008-1024.
14. Bharadwaj, Sundar G., P. Rajan Varadarajan, and John Fahy (1993), "Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research Propositions," Journal of Marketing, 57 (October), 83-99.
15. Biggar, James M. and Elnor Selame (1992), "Building Brand Assets," Chief Executive, 78 (July-August), 36-39.
16. Brech, Poppy (2001), "Brands Behind the Time-IPC Deal," Marketing, (August 2), 19.
17. Brush, Thomas (1996), "Predicted Change in Operational Synergy and Post-Acquisition Performance of Acquired Businesses," Strategic Management Journal, 17 (1), 1-24.
18. Capron, Laurence and John Hulland (1999), "Redeployment of Brands, Sales Forces, and General Marketing Management Expertise Following Horizontal Acquisitions: A Resource-Based View," Journal of Marketing, 63 (April), 41-54.
19. -, Will Mitchell, and Anand Swaminathan (2001), "Asset Divestiture Following Horizontal Acquisitions: A Dynamic View," Strategic Management Journal, 22 (9), 817-44.
20. Chu, Singfat and Hean T. Keh (2006), "Brand Value Creation: Analysis of the Interbrand-Business Week Brand Value Rankings," Marketing Letters, 17 (4), 323-31.
21. Constellation Brands (2005), 10-K Report for 2004 Fiscal Year, (accessed July 9, 2008), [available at http://www.sec.gov/Archives/edgar/data/16918/ 000001691805000031/form10k-022805.htm].
22. Deighton, John (2002), "How Snapple Got Its Juice Back," Harvard Business Review, 80 (1), 47-53.
23. Dobbs, Richard and Timothy Koller (2005), "Measuring Long-Term Performance," McKinsey Quarterly, (Special Edition), 16-27.
24. Dutta, Shantanu, Om Narasimhan, and Surendra Rajiv (1999), "Success in High-Technology Markets: Is Marketing Capability Critical?" Marketing Science, 18 (4), 547-68.
25. -, -, and -, (2005), "Conceptualizing and Measuring Capabilities: Methodology and Empirical Application," Strategic Management Journal, 26 (3), 277-85.
26. Ettenson, Richard and Jonathan Knowles (2006), "Merging the Brands and Branding the Merger," Sloan Management Review, 47 (4), 39-49.
27. Farquhar, Peter and Yuri Ijiri (1991), "Momentum Accounting for Brand Equity," in Managing Brand Equity (Elliot Maltz, report author), MSI Report No. 91-110, 100-102.
28. Graham, John R., Campbell R. Harvey, and Shiva Rajgopal (2005), "The Economic Implications of Corporate Financial Reporting," Journal of Accounting and Economics, 40 (1-3), 3-73.
29. Heckman, James J. (1979), "Sample Selection Bias as a Specification Error," Econometrica, 47 (1), 153-61.
30. Jackson, Tony (1996), "A Grip on the Intangible Management," The Financial Times, (December 16), 14.
31. Jones Apparel Group (2006), 10-K Report for 2005 Fiscal Year, (accessed July 9, 2008), [available at http://www.sec.gov/Archives/edgar/data/874016/ 000087401606000010/form10k_2005.htm].
32. Kamakura, Wagner and Gary J. Russell (1993), "Measuring Brand Value with Scanner Data," International Journal of Research in Marketing, 10 (1), 9-22.
33. Keller, Kevin L. (1993), "Conceptualizing, Measuring, Managing Customer-Based Brand Equity," Journal of Marketing, 57 (January), 1-22.
34. -, and Donald Lehmann (2006), "Brands and Branding: Research Findings and Future Priorities," Marketing Science, 25 (6), 740-59.
35. Knudsen, Trond, Lars Finskund, Richard Törnblom, and Egil Hogna (1997), "Brand Consolidation Makes a Lot of Economic Sense," McKinsey Quarterly, 4, 189-93.
36. Kumar, Nirmalya (2004), Marketing as Strategy. Boston: Harvard Business School Press.
37. Kumbhakar, Subal C. and C.A. Knox Lovell (2000), Stochastic Frontier Analysis. Cambridge, UK: Cambridge University Press.
38. Laforet, Sylie and John Saunders (1994), "Managing Brand Portfolios: How Leaders Do It," Journal of Advertising Research, 34 (5), 64-76.
39. -, and -, (1999), "Managing Brand Portfolios: Why Leaders Do What They Do," Journal of Advertising Research, 39 (1), 51-66.
40. Mahajan, Vijay, Vithala R. Rao, and Rajendra K. Srivastava (1994), "An Approach to Assess the Importance of Brand Equity in Acquisition Decisions," Journal of Product Innovation Management, 11 (3), 221-35.
41. Makadok, Richard (2001), "Toward a Synthesis of the Resource-Based and Dynamic-Capability Views of Rent Creation," Strategic Management Journal, 22 (5), 387-401.
42. Matolcsy, Zoltan and Anne Wyatt (2006), "Capitalized Intangibles and Financial Analysts," Accounting and Finance, 46 (3), 457-79.
43. McKay, Betsy and Nikhil Deogun (2000), "Coca-Cola Board Kills Plan to Buy Quaker Oats," The Wall Street Journal (Europe), (November 23), 26.
44. Moorman, Christine and Rebecca Slotegraaf (1999), "The Contingency Value of Complementary Capabilities in Product Development," Journal of Marketing Research, 36 (May), 239-57.
45. Morgan, Neil A. and Lopo L. Rego (2006), "Brand Portfolio Strategy and Firm Performance," MSI Working Paper Series, Issue 1, No. 06-101.
46. Muller, Karl A., III (1999), "An Examination of the Voluntary Recognition of Acquired Brand Names in the United Kingdom," Journal of Accounting and Economics, 26 (1-3), 179-91.
47. Rao, Vithala R., Manoj K. Agarwal, and Denise Dahlhoff (2004), "How Is Manifest Branding Strategy Related to the Intangible Value of a Corporation?" Journal of Marketing, 68 (October), 126-41.
48. -, Vijay Mahajan, and Nikhil P. Varaiya (1991), "A Balance Model for Evaluating Firms for Acquisition," Management Science, 37 (3), 331-49.
49. Ritter, Adam and Peter Wells (2006), "Identifiable Intangible Asset Disclosures, Stock Prices, and Future Earnings," Accounting and Finance, 46 (5), 843-63.
50. Rust, Roland T., Tim Ambler, Gregory S. Carpenter, V. Kumar, and Rajendra K. Srivastava (2004), "Measuring Marketing Productivity: Current Knowledge and Future Directions," Journal of Marketing, 68 (October), 76-89.
51. Ryan, Thomas J. (2005), "Liz Claiborne Acquires Prana," SGB, 38 (12), 15.
52. Sharma, Anurag and Idalene Kesner (1996), "Diversifying Entry: Some Ex Ante Explanations for Postentry Survival and Growth," Academy of Management Journal, 39 (3), 635-77.
53. Shocker, Allan and Barton Weitz (1988), "A Perspective on Brand Equity Principles and Issues," in Defining, Measuring, and Managing Brand Equity (Lance Leuthesser, report author), MSI Report No.88-104, 88-89.
54. Simon, Carol J. and Mary W. Sullivan (1993), "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, 12 (1), 28-42.
55. Smith, Daniel C. and C. Whan Park (1992), "The Effects of Brand Extensions on Market Share and Advertising Efficiency," Journal of Marketing Research, 29 (August), 296-313.
56. Smith, Gordon and Russell Parr (2005), Intellectual Property: Valuation, Exploitation, and Infringement Damages. Hoboken, NJ: John Wiley & Sons.
57. Sorkin, Andrew R. and Greg Winter (2000), "PepsiCo Said to Acquire Quaker Oats for $ 13.4 Billion in Stock," The New York Times, (December 4), 23.
58. Srivastava, Rajendra K., Tasadduq A. Shervani, and Liam Fahey (1998), "Market-Based Assets and Shareholder Value: A Framework for Analysis," Journal of Marketing, 62 (January), 2-18.
59. Varadarajan, P. Rajan, Mark P. DeFanti, and Paul S. Busch (2006), "Brand Portfolio, Corporate Image, and Reputation: Managing Brand Deletions," Journal of the Academy of Marketing Science, 34 (2), 195-205.
60. Vorhies, Douglas and Neil Morgan (2005), "Benchmarking Marketing Capabilities for Competitive Advantage," Journal of Marketing, 69 (January), 80-94.
61. Wernerfelt, Birger (1984), "A Resource-Based View of the Firm," Strategic Management Journal, 5 (2), 171-80.
62. Williamson, Oliver (1999), "Strategy Research: Governance and Competence Perspectives," Strategic Management Journal, 20 (12), 1087-1108.
63. Wyatt, Anne (2005), "Accounting Recognition of Intangible Assets: Theory and Evidence on Economic Determinants," The Accounting Review, 80 (3), 967-1003.