Financial Information and Brand Value

Conclusion

Insufficient disclosure of financial information on markets: a critical review

The link between financial communication and brand value information is an area of research that is barely touched upon in the literature. We have found that independent organizations publish annual studies that rank brands according to their value, these studies are widely reported in the financial press, and companies themselves can communicate on this point, particularly when they are on the podium.

Investors, too, use this information by consulting these rankings. This situation challenged us and led us to conduct this research.

The issue surrounding the methods of this communication and the ability to obtain reliable information that would make it possible to reconstitute brand value, based on data communicated by the company and not by organizations outside the company, has motivated the following reflection.

We conducted a case study of the valuation of the GUCCI brand during its acquisition by the PPR Group, which enabled us to highlight that the need to communicate elements that allow investors to better understand and assess brand value. Indeed, the importance of this information is real insofar as brand value often exceeds a significant proportion of that of the other assets that are valued on the balance sheet. Aaker (1994) developed the idea that knowing brand value may help shareholders to better assess the value of the company.

Our literature review, which is a benefit ...