Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.


 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference
 EMAC 2021 Regional Conference
 EMAC 2022 Annual
 EMAC 2022 Regional Conference
 EMAC 2023 Annual
 EMAC 2023 Regional Conference

EMAC 2020 Annual Conference


Should Marketing Assets Be on the Books? Unique Evidence of Capital Allocation Benefits for Marketing and the Firm
(A2020-55352)

Published: May 27, 2020

AUTHORS

Peter Guenther, University of Liverpool; Miriam Guenther, University of Liverpool; Bryan Lukas, University of Manchester; Christian Homburg, University of Mannheim

KEYWORDS

marketing-assets; balance-sheet-recording; capital-allocation

ABSTRACT

Despite marketing assets’ (MAs) importance to firms, their value is rarely reported to stakeholders. Current accounting standards restrict the balance-sheet recording of MAs such as brands because they do not meet the requirements for reliable measurement. While potential valuation risks are established, evidence regarding recording benefits is missing. We propose that reporting MAs’ values creates capital allocation benefits by reducing myopic marketing management and facilitating firm financing. Since Australian GAAP allowed comprehensive MA recording before the harmonization with international rules, this context provides a unique opportunity to investigate our hypotheses. Analyzing 2,056 financial statements of publicly-listed firms over a 17-year period, we demonstrate that the reporting of MAs reduces myopic marketing cuts and improves debt and equity financing. Our results suggest that firms would benefit in important ways from a relaxation of current accounting requirements.