The effect of brand strength on financialperformance : A quantitative analysis of how strong brands influencefinancial outcomes

This study examines the relationship between brand valuations, profitability, and firm value among the world's highest-valued brands from 2015 to 2024. The analysis also explores differences between service companies and manufacturing/consumer goods firms, assessing how these relationships vary across sectors. Using linear regression models, the results reveal a significant positive relationship between brand value and the market-to-book ratio (M/B), as well as a significant positive relationship between brand value and return on assets (ROA). Additionally, the findings support the notion that investments in brand building within manufacturing and consumer goods firms are positively associated with both ROA and the market-to-book ratio.