Do marketing-related intangible assets affect the company's net income?

Abstract

The study examines the correlation between marketing-related intangible assets and net income for the last reporting periodof 100 U.S. stock market leaders. Given that 102 companies were included in this ranking, but not all of them reported thenecessary information for the calculations, the sample for regression analysis was 44 companies. Based on information onmarketing-related intangible assets available in the companies’ reports, we concluded that the hypothesis that marketingrelated intangible assets determine net income is rejected because this factor is considered insignificant (Model 1). Of the fouranalyzed models, Model 4 is optimal for further use, which confirms the significant impact of marketing costs (expenses) onthe company’s net income. Our study makes two important contributions. First, the regression analysis based on the reportingdata of companies refutes the hypothesis that marketing-related intangible assets affect the company’s net income. Second,the proposed model (Model 4) confirms the significant impact of marketing expenses (costs) on net income, which leads toappropriate recommendations for further improvement of this model.