Brand valuation: an innovative approach based on the risk difference

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dc.contributor.authorSkalický, Romancs
dc.contributor.authorMeluzín, Tomášcs
dc.contributor.authorZinecker, Marekcs
dc.coverage.issue1cs
dc.coverage.volume12cs
dc.date.issued2021-05-24cs
dc.description.abstractResearch background: Among academicians, a growing interest in brand valuation methods can be observed since the 1980s, when it became obvious that firms have off-balance sheet assets which have a significant effect on their value. Moreover, in a number of cases. the need to value the brand arises due to the repotting requirements or transactional and other intrafirm reasons. The existing methods used so far have commonly focused on changes in variables such as sale prices, changes in customer behaviour, or sales volumes and very often lead to different results, even when valuing the same brand. We believe that the risk factor has been neglected in these methods. although having a significant impact on the brand valuation. Purpose of the article: The aim of this paper is to formulate an alternative brand valuation approach based on the risk difference. This is defined as the difference between the risk to which a producer with a certain brand is exposed and the risk of the producer without a brand. Methods: Firstly, a set of assumptions was defined concerning the issue what conditions are required to be applied to use the proposed methodological approach. Next, the concept itself is formulated and tested while using the case study approach. Hence, in conditions of a model company, the method was verified with specific data. The results were also compared with the reproduction cost approach. Findings & value added: This paper presents a novel brand valuation method based on the risk difference. Building on a thought experiment, we compare an incumbent with a brand rather than with an average producer, which is a commonly used approach, with a new entrant to the market. We argue that in comparison to existing methods, our methodological approach reduces the number of unobservable inputs in the brand valuation process, and thus increases the accuracy and reliability of its results. Our method supports both researchers and practitioners to establish a better understanding between the well-established financial theories and new directions in brand valuation research.en
dc.formattextcs
dc.format.extent159-191cs
dc.format.mimetypeapplication/pdfcs
dc.identifier.citationOeconomia Copernicana. 2021, vol. 12, issue 1, p. 159-191.en
dc.identifier.doi10.24136/oc.2021.007cs
dc.identifier.issn2083-1277cs
dc.identifier.orcid0000-0002-5208-8396cs
dc.identifier.orcid0000-0001-5238-5166cs
dc.identifier.orcid0000-0003-1764-0904cs
dc.identifier.other171687cs
dc.identifier.researcheridAAL-5760-2021cs
dc.identifier.scopus36976830900cs
dc.identifier.urihttp://hdl.handle.net/11012/200968
dc.language.isoencs
dc.publisherInstitute of Economic Researchcs
dc.relation.ispartofOeconomia Copernicanacs
dc.relation.urihttp://economic-research.pl/Journals/index.php/oc/article/view/1875cs
dc.rightsCreative Commons Attribution 4.0 Internationalcs
dc.rights.accessopenAccesscs
dc.rights.sherpahttp://www.sherpa.ac.uk/romeo/issn/2083-1277/cs
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/cs
dc.subjectbrand valuationen
dc.subjectvaluation methodsen
dc.subjectrisk differenceen
dc.subjectNet Present Valueen
dc.subjectNPVen
dc.subjectIRRen
dc.titleBrand valuation: an innovative approach based on the risk differenceen
dc.type.driverarticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen
sync.item.dbidVAV-171687en
sync.item.dbtypeVAVen
sync.item.insts2025.02.03 15:43:04en
sync.item.modts2025.01.17 18:39:43en
thesis.grantorVysoké učení technické v Brně. Fakulta podnikatelská. Ústav ekonomikycs
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