Components Of Equity Research Articles

Market reaction to the transitory effects of IFRS: an examination of disaggregated measures

PurposeThis study examines how International Financial Reporting Standards (IFRS) are applied, disaggregates the cumulative effect of the IFRS transition into magnitude measurements of the standard-to-standard differences (by standard) and management discretionary choices (by choice) and tests which transitory effects at every level of disaggregation alter investor behavior.Design/methodology/approachUsing hand-collected data from the IFRS 1 disclosures, the research design consists of eight regression models which test fluctuations in investment behavior as a function of varying measures of IFRS adjustments at aggregated and disaggregated levels including magnitude measurements of pronouncements and management choices.FindingsFindings from the study identify specific standards and management discretionary choices associated with market reaction. Evidence from this study demonstrates the value of disaggregated measures to obtain a more comprehensive understanding of market reaction and associations with transitory effects of IFRS. Findings from the study suggest that the market favors management discretionary choices that decrease retained earnings and potentially increase future net income. Overall, model results suggest that a more comprehensive understanding of the specific standards is obtained that alters market behavior and how the market responds to positive and negative equity adjustments.Originality/valueThis study contributes to the literature examining the capital market effects of IFRS by decomposing the generally accepted accounting principle (GAAP) transition into magnitude measurements of specific standard-to-standard differences (by standard) and management discretionary choices (by choice) to understand how the market responds to the transitory effects of a GAAP change. This is important because it puts regulators, standard setters, investors and researchers on notice that the way in which the authors analyze and measure equity components could be consequential to the authors ability to assess a GAAP change. This study informs all jurisdictions which have adopted or are deliberating the adoption of IFRS how IFRS is being implemented and which areas of application are relevant to investors. Further, market reactions to accounting information pertaining to a GAAP change may only be revealed at the disaggregated and decomposed levels of the retrospective application of the GAAP implementation.

Perceptional components of brand equity: Configuring the Symmetrical and Asymmetrical Paths to brand loyalty and brand purchase intention

This research investigates the impact of brand perception on brand loyalty and brand purchase intention using the lenses of complexity theory. First, the study conceptualizes and operationalizes perceptional and behavioral components of brand equity. It then examines the dimensions of brand perception, and by assessing the consequences of favorable brand perception, the study enables a better understanding regarding whether a brand marketing approach helps to improve marketing performance. The research was conducted using a mixed methodology, beginning with interviews in order to gain a better understanding of the relationship between the dimensions of brand perception. These were followed by a questionnaire survey, and the resulting data were analyzed through content analysis and fuzzy-set qualitative comparative analysis (fsQCA). The results indicate that brand awareness, perceived quality, brand association, brand fondness, brand image, and product country image have a strong impact on the management of brand perception. The finding illustrates that it is the combinations of various perceptional elements of brand equity rather than any single factor that have strong impacts on brand loyalty and brand purchasing intention. The results support the importance of brand perception for the fashion industry, which needs to be more interactive in order to increase their customers' brand loyalty and brand purchasing intention.

A New Model for Customer Equity

In this study, the fundamental model of customer equity is studied and an alternative model is tested where attitudinal and behavioral customer loyalty are treated as two additional individual components of customer equity. In gathering required data, survey method is used with 377 respondents based on judgement sampling. In order to test the proposed model, a different calculation for customer equity is applied. In model testing, LISREL package program is used and structural equation modelling (SEM) is applied. Results indicate that the proposed model stating that customer equity, has two more components, namely attitudinal loyalty and behavioral loyalty, is significant at 95% confidence level, has a high goodness of fit (GFI = .93) and has an acceptable level of root mean square error (RMSEA= .07). However, results also show a correlation between value equity and brand equity terms, which can be tested with different products or sample in future studies.

Social vs traditional media communication: brand origin associations strike a chord

PurposeThe purpose of this study is to develop an analytical comparison between the impact of social media communication (both user-generated and firm-created) and the effects of traditional media communication. In particular, the components of customer-based brand equity and any difference in the effects according to brand origin associations are investigated. The target group consisted of fans and followers of beer brands on social media.Design/methodology/approachIn all, 192 questionnaires were collected a survey link that was posted on beer brand pages that operate in the Italian market. Structural equation modeling was developed to investigate the impact of social and traditional media communication on brand equity and a multi-group analysis to examine the differences according to the brand names’ origin associations.FindingsResults show that fans and followers cannot be considered as a collective unit. Additionally, consumers make a clear distinction between firm-created/user-generated social media and traditional media communication. Specifically, they distinguish how the effects of the two media outlets differ in relation to the brand origin associations. International brands should concentrate on both firm-created and user-generated communication, whereas national (Italian) brands should foster their firm-created communications. In both cases, however, traditional media communication loses its effectiveness on the brand equity components.Originality/valueContrary to existing literature, this project compares the effect of 2.0 and traditional media on various social media platforms, pointing out two different models according to the brands’ origin associations. This study develops interesting insights both for international companies with huge brand portfolios and for national firms in a complex market like those for beer.

Brand equity and brand - Consumer relationship quality in Vietnam

Building a quality relationship between the brand and consumers is necessary for an enterprise to exist and develop [11]. As a result, brand relationship quality attracts a great deal of interest from researchers. Many studies have been conducted on the nature and aspects of brand relationship quality. However, limited research has investigated the nature of brand - consumer relationship quality in B2C market, especially the nexus between brand equity and brand relationship quality. Furthermore, most of them are conducted in foreign countries. This study examines the nature of brand - consumer relationship quality and consider the nexus between components of brand equity and brand relationship quality in the Vietnam’s consumer market, Structural Equation Modeling (SEEM) was employed, using data from a survey on 600 consumers. The results indicate that brand image and brand attractiveness have a positive effect on relationship quality and brand loyalty is a result variable of brand relationship quality.

Information technology directors’ efforts on innovation, integrated marketing communications and brand equity

PurposeThe main purpose of this study is to examine information directors in the area of communication activities related to innovation and marketing decisions in branding.Design/methodology/approachThe study is quantitative and utilized structural equation modeling technique with the approach of minimum trivial squares for analyzing the data. In all, 130 questionnaires were distributed among information technology directors in Tehran and they form the statistical population for the research.FindingsThe results suggested that innovation in integrated marketing communications has positively significant effect. In addition, both the variables of innovation and integrated marketing communications positively and significantly affect the three components of brand equity (namely, brand image, the perceived quality and brand loyalty).Originality/valueDespite the growing acknowledgment, the importance of innovation, integrated marketing communications and brand equity, however, there are few studies on the role and importance of information technology directors’ efforts on innovation, integrated marketing communications and brand equity.

The Impact of Social Media Pages on Customer Equity and Purchase Intention; An Empirical Study of Mobile Operators

The competitive conditions of the market, the desire to reach the target group directly, and the increasing interest of the consumers to the social media today make the use of social media inevitable. This study set out to identify attributes of marketing communication activities via social media pages of mobile operators in Turkey and examine the relationships among customer equity components (value equity, relationship equity, brand equity) and purchase intention through a structural equation modelling. According to results of the study marketing communication via social media pages has been found to be effective in all components of the customer equity, but value equity does not have a significant effect on purchase intention and there was no relationship between marketing communication via social media pages and purchase intention. The findings of this study can provide an overview of the relationship between social media and customer equity and enable mobile operators to forecast the future purchase intention of their customers more accurately, and it may also provide a guide to managing marketing activities especially on social media as well.

The essence of equity capital and its structuring for accounting needs

The paper considers various interpretations of the essence of equity capital. The concept of equity capital is viewed from the perspective of property as a venture capital, i. e. business property, which does not guarantee profits and dividends, and for which there is no clear schedule of returning funds to investors and shareholders.The most common equity capital components in national and foreign practice are examined and compared. It is pointed out that the equity components mainly used in Ukraine are defined by the National Accounting Standards. Alternatively, the structure of equity capital components in foreign practice relies on the Conceptual Framework of Financial Statements, but it is further detailed by national standards of each country and depends on its policy and accounting characteristics. The structure of equity capital in foreign practice may be influenced by shareholders’ decisions on the establishment of funds (additional capital), allocation of profits, transactions with treasury shares. It is made clear that in most countries equity capital components include joint stock capital, surplus reserves, and retained profit.The article reviews the classification of equity capital, viewed as the key factor, and determines its influence on accounting principles and policies. It is concluded that in regulatory documents, there are no clear lines between types of equity capital. The paper also discusses various views of scholars on equity capital arrangement. It is found that in research works, equity capital is classified based on various characteristics, but the majority of researchers consider sources of equity capital to be the main criterion. In addition, there is no consensus among academics as to what types of equity capital can be singled out by the criterion described.Taking into consideration some proposals of scholars and foreign practice related to ac- counting of equity capital, the author develops a generalized structure of equity capital which is based on the sources of capital formation and includes: invested capital, particularly registered capital (statutory and mandatory share capital), corrective capital (unpaid and withdrawn capital), additional capital (capital received from investors for stock that exceeds the par value of the stock, i.e. additional equity capital); acquired capital (assets received for free, capital formed from revaluation of assets, other capital) and reinvested capital (retained profits (uncovered losses) and surplus reserves). The above equity structure can be used to prepare financial statements in order to increase its informational value.Proposals are given on how to improve methods for accounting of equity capital, in particular accounting of additional capital invested by founders in the account entitled “Non-registered investments of owners”.

Applying consumer-based brand equity in luxury hotel branding

This study examines the effects of consumer-based brand equity (CBBE) components (i.e., brand loyalty, brand awareness, perceived quality, and brand image) of luxury hotel brands on consumer brand attitude and purchase intention with brand performance as a contextual factor. Through a survey involving 327 tourists conducted in luxury hotels in Macau, results reveal that all four CBBE elements positively relate to brand attitude, and three directly influence purchase intention. Brand attitude mediates the relationship between four CBBE elements and purchase intention, and brand performance moderates the relationship between brand attitude and purchase intention. This study expands CBBE theory to include luxury hotel brands and contributes to the literature by clarifying the direct, indirect, and total effects of each CBBE element on brand attitude and purchase intention. In addition, the study identifies brand performance as a contextual factor rather than a consequence of brand equity and brand attitude.

Managing consumer-based brand equity through brand experience in Islamic banking

PurposeThe purposes of the study are to investigate the role of brand experience in the generation of consumer-based brand equity (CBBE) in Islamic banking and to identify the important components of brand equity, in light of Aaker (1991) and Keller (1993), who combined effect on brand loyalty to effectively manage CBBE in Islamic banking.Design/methodology/approachPaper and pencil technique was used to collect data from the consumers of Islamic banking products. In total, 365 respondents were finally considered for data analysis. Convenient sampling technique was used to collect data. Correlation, multiple regression and hierarchical regression techniques were used with the aid of SPSS and AMOS to analyse the data.FindingsThe results show that perceived quality, brand image, brand experience, brand loyalty and brand awareness are positively associated and have a significant influence on overall brand equity. Based on the results, the study concludes that perceived quality is an important variable in the management of CBBE in Islamic banking to improve overall brand equity. Hence, it is concluded that perceived quality, brand experience and brand image are the most important focusing areas from CBBE in the management of Islamic banks’ brand equity and cannot be undervalued.Practical implicationsThe research findings illustrate the importance of brand experience and effects of overall brand equity dimensions in the process of building strong brand equity of Islamic banks. Therefore, this research has implications not only for experiential marketing but also for human resource managers and brand managers. The scope of the present study is limited only to the consumers of Islamic banks products of Malaysia and Pakistan.Originality/valueBrand management literature focused on the components of brand equity model and its importance in creating overall brand equity. Previous studies are yet to investigate the combined effect of brand equity components (perceived quality, brand awareness, brand image and brand loyalty) to manage overall brand equity. Therefore, the present research fills the gap by investigating the combination of best brand equity components that are very effective to manage brand loyalty and overall brand equity. Second, this study investigates the impact of brand experience on CBBE components in Islamic banking which has not been tested before in Islamic banking.

Annual salary system reform at public hospitals in Sanming: practice and reflections

Annual salary system reform at public hospitals in Sanming was cited as an example, to touch upon the five components of equity in such a reform, namely external equity, internal equity, individual equity, procedural equity and interactive equality. The significance, roadblocks and essential conditions were then analyzed, to come up with such recommendations as development of a mechanism for remuneration survey and dynamic adjustment, and a system for better posts grading and evaluation, as well as better performance appraisal tools, and a competent performance appraisal system. Key words: Sanming; Public hospitals; Annual salary system; Equity

Re-Examine Disclosure versus Recognition: Evidence from Convertible Debt Accounting

Using a set of hand-collected data, I study the effects of recognizing liability and equity components separately for cash-settled convertible debt as required by APB 14-1. First, I find that issuers view APB 14-1’s requirement as reducing the benefits of using cash-settled convertible debt. Issuers are more likely to reduce the outstanding amount of cash-settled convertible debt when the increase (decrease) in interest expense (leverage ratio) resulting from the bifurcation process is higher (lower). Second, I find that managers are more likely to make such early repurchases when accounting standard changes are included in the calculation of debt covenant compliance. Last, I find that recognition, as compared to disclosure, of liability and equity components helps credit rating agencies to better evaluate the issuers’ accounting information. More specifically, I find that the financial ratios in the post-2008 period, such as interest coverage ratios, can better explain issuers’ credit ratings than do the ratios in the pre-2008 period. These empirical results are consistent with the view that changes in the financial reporting of cash-settled convertible debt have real effects on managerial behaviour and the usefulness of the information in financial statements used by the credit market.

The Causal Relationships between Components of Customer-Based Brand Equity for a Destination: Evidence from South Korean Tourists in Danang City, Vietnam

The main purpose of this study is to examine the causal relationships between components of customer-based brand equity for a tourist destination. We have collected data from 252 South Korean tourists in Danang City and tested some hypotheses by applying structural equation modeling (SEM). Results show that: (1) destination brand awareness has a significant and positive effect on destination brand image, but not on destination perceived quality and destination brand loyalty; (2) destination brand image has positive and direct influences on destination perceived quality and destination brand loyalty; and (3) destination perceived quality has significant positive impacts on destination brand loyalty. Lastly, these findings have managerial implications for decision makers.

A Study of Factors Impacting Customer based Brand Equity in Television Market

The concept of television brand equity has become a competitive tool for successful television brands in today's hyper competitive market characterized by increase in changing demands by customers, increased competition, rapid technological changes and shrinking disposable income. Most sellers should realize that it is cheaper to retain than to attain new customers through brand equity. The study was designed to draw the factors of brand equity impacting choice of television brand and confirming it through confirmatory factor analysis. The data was collected from a sample size of 196 respondents through online data collection tools. The finding highlighted that the tradition components of brand equity namely brand association, brand image, brand loyalty, brand awareness as well as newer components of brand experience and store image are contributing significantly to Brand Equity.

A model of customer-based brand equity: evidence from the banking service in Iran

There is a growing emphasis on building and managing brand equity as the primary drivers of a bank industry success. In this study, to evaluate of brand equity dimension, the measuring tools suggested by different researcher, regarding local circumstances and Persian bank specifications, is used. The present research is a descriptive study by using a sample of 266 actual customers from seven branches in north provinces Saman bank of Iran. The findings in this paper support the five-dimensional model of customer-based brand equity in bank industry. The present study contributes to the understanding of customer-based brand equity measurement by examining the dimensionality of this construct. The paper shows that bank managers and executives should try to influence; perceived quality, brand loyalty, brand image, brand value and brand awareness in their organisations and design their service delivery process by considering relations between customer-based brand equity components.

Destination brand equity in tourism context: evidence on Iran

Abstract Tourism industry provides an important source of income for many countries; it has been considered the second important industry of the 21st century. This study analyses the effect of destination brand equity on tourists’ intention to revisit. Kish Island was chosen for this case study. Components of destination brand equity include destination awareness, destination image, destination quality, perceived value, destination loyalty, satisfaction and intentions to revisit. This research is a descriptive and survey study. The target population was travelers who visited this island in the first half of 2013. The questionnaire was the research tool. Data were analysed using SPSS and LISREL. The results showed that there is a meaningful relationship between the destination awareness and perceived value, image destination and perceived value and satisfaction, destination quality and perceived value and destination loyalty, perceived value and destination loyalty, satisfaction and destination loyalty and intentions to revisit, and finally destination loyalty and intentions to revisit.

Nghiên cứu các thành phần giá trị thương hiệu chuỗi nhà hàng KFC tại TPHCM (Study on the Elements of the KFC Chain Brand Equity in Hochiminh City)

Vietnamese Abstract: Nghien cứu nay hiệu chỉnh mo hinh định lượng cac thanh phần gia trị thương hiệu của chuỗi nha hang KFC tại TPHCM. 276 khach hang được phỏng vấn trực tiếp bằng bảng câu hỏi. Bai viết vận dụng phương phap kiểm tra độ tin cậy Cronbach’s alpha, phân tich nhân tố kham pha (EFA); va mo hinh hồi quy bội thong qua phần mềm phân tich dữ liệu SPSS 20.0. Kết quả nghien cứu cho thấy gia trị thương hiệu của chuỗi nha hang KFC tại TPHCM bao gồm bốn thanh phần, sắp xếp theo thứ tự độ quan trọng giảm dần: “nhận biết thương hiệu”, “long trung thanh thương hiệu”, “chất lượng cảm nhận”, “hinh ảnh thương hiệu”. Từ đo, nghien cứu đề xuất cac khuyến nghị đến cac nha quản trị thương hiệu của chuỗi nha hang KFC nhằm nâng cao gia trị thương hiệu của minh. English abstract: This research adjusts a quantitative model to examine components of brand equity of the KFC restaurant chain in Ho Chi Minh City. 276 customers were interviewed directly by questionnaires. The Cronbach’s Alpha reliability test, the Exploratory Factor Analys (EFA) and the multiple regression model were applied in the article through the statistical analysis software SPS20.0. The results showed that there are four main components of brand equity of the KFC restaurant chain in Ho Chi Minh city, arranged by the descending importance including “brand awareness”, “brand loyalty”, “perceived quality” and “brand image”. Thence, some recommendations for brand managers of the KFC restaurant chain to enhance their brand equity are proposed in this article.

Consumer Value and Brand Value: Rivals or Allies in Consumer-Based Brand Equity?

Both consumer value and brand value are two components of consumer-based brand equity (CBBE); however, consumer value has attracted most empirical efforts, and its relation to its fellow—brand value—has been a void in literature thus far. The current study investigated the relations between consumer value and brand value as well as other related concepts, such as nonmonetary costs and perceived price for some tourism destination brands—namely, Orlando and its competitors. Also, the significance of brand value and consumer value is investigated in comparison with other components of CBBE. Results indicated a negative relationship between consumer value and brand value overall, minimal influence of consumer value on consumer loyalty, and no influence of brand value on consumer loyalty for destination brands, except for negligible anomalies.

The Impact of International Financial Reporting Standards (IFRS): Evidence from Canada

Abstract The Canadian transition to IFRS provides a valuable IFRS learning opportunity. The Canadian transition and implementation of IFRS provides a unique opportunity to examine the conversion of financial reporting from a similar set of financial reporting rules as U.S. GAAP in a similar economic and business environment. The implementation and adoption of IFRS is not a monolithic event. Our ability to comprehensively understand and assess IFRS requires transparent disclosures such as those mandated by IFRS 1 and disaggregation of the equity components to observe and measure the impact of IFRS as it pertains to discretionary management implementation choices, material reclassifications, and GAAP-to-GAAP differences. Comprehensive knowledge of IFRS 1, First Time Adoption of International Financial Reporting Standards is crucial to our ability to assess the transitory and future impact of IFRS. IFRS 1 sets the precedent for financial reporting under IFRS, overrides transitional provisions included in other IFRS, and prescribes detailed disclosures. This detailed “rules-based” standard permits discretionary management policy choices which have material impact on transitory reporting as well as future financial results.

Impacts of Community Commitment on Brand Equity Creation in Company-Initiated Online Brand Communities

With the emergence of online communities, the role of online communities in establishing brand equity has been greatly emphasized. In order to enhance our understanding of commitment in online brand communities, the present study attempts to investigate how three dimensions of community commitment (continuance, affective, and normative commitment) influence each component of brand equity (brand awareness, brand association, perceived quality, and brand loyalty) in the context of company-initiated online brand community. An online survey was conducted with a sample of online brand community members. The results found differential impacts of three types of community commitment on brand equity components, emphasizing the role of continuance and affective commitment. Continuance community commitment positively influenced brand awareness and brand association. Affective community commitment positively affected perceived quality, while among the three, only continuance and affective community commitment influenced the enhancement of brand loyalty. The results suggest that brand marketers need to focus on continuance and affective commitment factors in their online communities to effectively enhance brand equity possessed by consumers. Theoretical and managerial implications are provided.