브랜드 구축으로 인한 광고 및 연구개발 지출의 이익효과 차이|RISS 상세보기

다국어 초록 (Multilingual Abstract)

There is a growing recognition that intangible assets are important determinants of firm value in a knowledge-based economy. The literature in accounting includes several empirical studies linking firm value and/or earning and the expenditures for R&D, advertising, and human capital, which generate intangible assets. Prior research shows the significant positive effect of R&D expenditures on earning, but the effects of advertising expenditures are mixed (Lev and Sougiannis 1996, Cho and Chung 2001, Peles 1971, Abdel-khalik 1975, Falk and Miller 1977, Lee 2001). Brand is an intangible asset which is closely related to advertising. Brand value estimates, however, are consistently positively associated with price and return (Aaker and Jacobson 1994, Barth et al. 1998, Kallapur and Kwan 2004), while the effect of advertising on them varies over time and among companies and products. Several studies in marketing provide useful evidence to solve the difference of the results. Campbell and Keller (2003) find that the communicative effecti- veness of advertising depends on prior familiarity with the advertised brand, which suggests that the mixed earning effect of advertising expenditures may be caused by brand familiarity of the firm. This paper estimates the effect of R&D and advertising expenditures on earnings. In particular, we examine the differences of the effects between the firms owning familiar brands and other firms. The first set of tests examines the association between ordinary income and advertising and R&D expenditures. Specifically, we estimate the following cross- sectional regression (5). The next set of tests examines the differential earning effect of advertising and R&D expenditures which may be caused by brand familiarity. The following cross-sectional estimation equation (6) including brand dummy specifies our second regression. <Table 5> presents summary statistics from the estimating equation (5), which provide evidence that R&D and advertising expenditures are significantly positively associated with the ordinary income of manufacturing firms. The findings are consistent with our expectations. <Table 8> provides the results from the estimating equation (6), which examines the differential earning effect between firms owing familiar brands and other firms. The table reveals that the earning effects of advertising expenditures are significantly negative among other firms which don`t have familiar brand, while the earning effects of the firms owning familiar brands are still significantly positive. The earning effects of R&D expenditures are significantly positive for both the firms owning familiar brands and other firms. The findings suggest that, as predicted, the earning effect of advertising expenditures varies whether the firm has a familiar brand or not. The results are consistent after controlling other variables such as firm size, membership of a large Chaebol group, leadership in industries and the average profitability of industries. The findings indicate that the mixed results of prior studies have been caused by missing the firm`s brand, a moderator between advertising expenditures and earning. The results suggest that firms should consider other strategic variables such as brand when they decide their advertising expenditures, because the earning effect of advertising expenditures is positive only for firms owning a familiar brand.

번역하기

참고문헌 (Reference)

1 조성표, "硏究開發支出의 多期間利益效果分析" 한국경영학회 30 (30): 289-315, 2001

2 Kwon, Soo Young, "Usefulness of Accounting Information in Capital Market" Shinyoungsa 2003

3 Kallapur, S, "The Value Relevance of Reliability of Brand Assets Recognized by UK Firms" 79 : 151-172, 2004

4 Hall, B. H, "The Stock Market’s Valuation of R&D Investment During the 1980's" 83 : 259-264, 1993

5 Chan. C, "The Stock Market Valuation of Research and Development Expenditures." 56 : 2431-2456, 2001

6 Sundaram, D. S, "The Role of Brand Familiarity on the Impact of Word-of-Mouth Communication on Brand Evaluation." 26 : 664-670, 1999

7 Simon, C, "The Measurement and Determinants of Brand Equity: A Financial Approach." 12 : 28-52, 1993

8 Bublitz B, "The Information in Discretionary Outlays: Advertising, Research and Development" 64 : 108-124, 1989

9 Aaker, David, "The Financial Information Content of Perceived Quality" 31 : 191-201, 1994

10 Cho, Young Moo, "The Effect of Research and Development Expenditures on Earnings and Market Value." 83-111, 1998