Search results

The purpose of this article is to analyse, from a shareholder perspective, the link between branding and financial performance. The paper focuses, in the European context, on situations in which shareholder wealth is created or destroyed, and this is measured by using return on assets or market‐to‐book value as a performance benchmark.

The investigation is designed as a quantitative study and is based on responses obtained from 847 listed banks including 480 located in Europe. There is an analysis of the correlation between branding and shareholder value, by means of regression analysis. Deductions are made for key variables including capital structure, ownership and capital market ratios.

The regression analysis indicates that there are different strategic branding phases and there is correlation between branding and shareholder value. Each phase has its own strategic implications for shareholders, with value either being created or destroyed.

The data deal with secondary accounting information submitted in annual reports and are based primarily on European or US‐based banks, which mean that the conclusions and generalizations cannot necessarily be applied to other industries, products or on a global scale.

This is the most comprehensive quantitative study so far conducted in the field of branding and shareholder value in the banking sector, thus providing unique insight into the strategic branding phases with which banks have to contend. Academics and practitioners, including board members, are offered guidance and a conceptual framework for assessing whether branding activities are generating satisfactory financial results for their investors. Furthermore, it also documents that banks with the right balance between branding and overall operating expenditures can achieve a significantly higher return on assets, which can be a decisive factor in achieving a competitive edge in a crowded and competitive market place.

The authors examine the performance of individual global equity funds in Central and Eastern Europe (CEE) and separate the skill of their fund managers from luck.

The authors use cross-sectional bootstrap simulations to study the monthly net and gross returns of 175 funds over the period September 2005 to December 2019. Simulations are applied to three, four, and five-factor asset pricing models, and to regressions run on fund-specific benchmark indexes. The authors also examine the value added by all funds and by fund size groups.

Using multifactor models, a majority of the individual funds fail to deliver alpha, both net and gross of fees; whereas, most of the negative alphas appear due to poor skills, not bad luck. Relative to benchmark indexes, about 5% of the sample shows skill only gross of fees, indicating that fund management fees absorb this skill. As a whole, global equity funds in CEE add more economic value than they destroy, gross of fees, which is largely driven by large funds.

Market-tracking passive indexes are the most reliable choice for investors who want to maximise their risk-adjusted returns at the lowest possible cost. However, investors with a high level of risk appetite might prefer small actively managed funds in CEE when market conditions are stable or growing. Investors who are less risk tolerant might prefer large actively managed funds.

This is the first study to shed light on the presence of skill in mutual fund returns in CEE.

Marketing is one of the key pillars of the successful management of an enterprise. For the transition economies of Central and Eastern Europe, this had previously been a neglected aspect. The aim of this paper is to assess the development of marketing practice in the firms of one of those economies, the Czech Republic, between 1999 and 2003. It analyses the implementation of the Internet as amarketing tool and how Czech enterprises approach marketing and marketing strategy. With the accession of the Czech Republic and other formerly communist countries to the European Union in 2004, the importance of marketing to such firms cannot be overstated, if the benefits of the enlarged marketplace are to be realised fully.

This paper aims to develop and empirically test a conceptual framework explaining the influence of the sales force on brand equity relative to the product and promotion elements of the marketing mix, in the context of business‐to‐business marketing.

Six research hypotheses, relating to the effects of four key drivers of B‐to‐B brand equity identified in a review of the relevant literature, were empirically tested with a sample of 201 respondents in B‐to‐B firms in Germany, using partial least squares analysis.

The results confirm the high relevance of the sales force to the building and maintenance of a strong B‐to‐B brand. The most important driver of brand equity in this environment is the salesperson's behaviour, followed in sequence by his or her personality, product quality and non‐personal marketing communications.

The sample size permits only a general analysis and conclusions. The choice of PLS analysis and formative scales limits the rigorousness of scale and model evaluation. The decision to interview one manager per company may have introduced informant bias.

The study identifies controllable variables that are critical to the effective management of a B‐to‐B brand and offers an alternative approach to the measurement of brand equity in B‐to‐B marketing.

This is the first study to test the widely claimed influence of the sales force on B‐to‐B brand equity empirically, developing a simple but powerful framework to integrate sales management and brand management in this context.