Karen S. Cravens

Performance consequences of brand equity management: evidence from organizations in the value chain

Evaluating the consequences of brand equity management is one of the most important measurement issues for intangible assets in the new economy. Studies have validated the effect of brand equity on the value of the firm and addressed the capital market effects of intangible associations such as brand value. Yet, there is not sufficient evidence on which dimensions of brand equity should be measured and monitored to support financial performance. Using regression analysis on a sample of managers in Austrian organizations, this study investigates the effect of perceived brand equity on brand profitability, brand sales volume, and perceived customer value. Results indicate strong support for measures of perceived quality, brand loyalty, and brand awareness as antecedents of firm performance, customer value and willingness to buy.

Analysis of co-operative interorganizational relationships, strategic alliance formation, and strategic alliance effectiveness

Independent organizations collaborate to increase the competitive advantage of each organization. This paper develops a conceptual framework for defining and classifying co-operative interorganizational relationships. The features and differences between alternative co-operative interorganizational relationships are highlighted by the framework. One form of co-operative interorganizational relationship, a strategic alliance, is a means for organizations to gain competitive advantage in a product/market when environmental turbulence and diversity are high and the organizations skill and resource gaps are high. The subsequent discussion examines strategic alliances. The external and internal influences on alliance formation and the dimensions of the relationship that may impact alliance effectiveness are considered. Several propositions concerning effectiveness are formulated. The external and internal influences of alliance formation include internal structure and relationships, technology, and organizati...

Assessing the performance of strategic alliances:: matching metrics to strategies

For many organizations, the current business environment compels the use of collaborative alliances as an important component of strategy. Consequently, the need to assess the performance of these alliances becomes a priority as more and more companies enter into such relationships. Analysis of alliance success during the last decade indicates that performance evaluation is a critical success factor, and the reality is that many companies do not develop and implement formal performance evaluation processes. It is often difficult to create a formal evaluation process due to the unique nature of the alliance structure. We propose the use of the balanced scorecard as a means to develop a formal assessment approach that links performance evaluation to the objective of the alliance. The result is a generic template that can be adapted to the specific alliance evaluation requirements of a particular organization.

Examining the role of transfer pricing as a strategy for multinational firms

In contrast to a purely tax-driven mechanism, international transfer pricing can be considered as a means to accomplish corporate objectives and thus create strategic consequences. This paper examines the results of a survey of executives of US-based multinational firms who describe the international transfer pricing objectives and strategies of their firms. Results indicate that executives are not solely focused on taxation issues as the primary objective of international transfer pricing. Multinationals employ transfer pricing to assist in achieving competitive advantage and other corporate objectives as well. This study investigates the influence of transfer pricing on corporate performance and the link involving the effectiveness of transfer pricing in accomplishing objectives. In general, executives perceive that transfer pricing does influence measures of corporate performance. This is supported by the finding that transfer pricing also contributes toward achieving objectives.

A Framework for Determining the Influence of the Corporate Board of Directors in Accounting Studies

Accounting, auditing, and tax professionals constantly evaluate the integrity, competence, and financial performance of clients as factors in practice that influence both client acceptance decisions and the manner in which professional services are rendered. Yet, from an accounting perspective, previous research investigating the corporate board of directors as a governance mechanism has focused only on the representational role of board members. Moreover, many of these studies resulted in conflicting findings according to these attributes. Other disciplines address the particular influence of the board with respect to overall corporate performance, but arrive at little agreement on either the effect of or the most critical of board attributes. This literature review synthesizes the existing research to provide a framework in which to evaluate the effect of the board of directors in accounting settings and, in particular, when conducting future research that employs elements of corporate governance as dependent or independent variables in accounting studies.

A Comparison of Client Characteristics by Auditor Attributes

Seeks to compare the three auditor attributes of brand name or reputation, concentration and structure to determine how they collectively influence the auditor selection process. The methodology for this study involves a comparison of the financial characteristics of the client base of Big Eight and non‐Big Eight firms. Overall, this study finds that comparison of client financial characteristics reveals significant differences in auditor brand name. In addition, the analysis indicates that differences also exist, based on audit structure and auditor reputation. Concludes that the auditor selection process, as proxied by a client′s systematic risk, is influenced by a joint combination of auditor attributes. Therefore the results of the study appear to support the theory that clients and auditors seek to match on desired traits.

Brand value accounting: an international comparison of perceived managerial implications

Data concerned with the managerial implications of brand value accounting were collected from accountants and marketing managers working in strongly branded companies in New Zealand (N.Z.), the United Kingdom (U.K.) and the United States (U.S.). Since the external reporting climate in the U.S. prohibits the inclusion of brand value as a separate asset in the published balance sheet, it was anticipated that U.S. managers would be the least positively disposed to the potential of beneficial managerial implications deriving from brand valuation. Contrary to this expectation, managers in the U.K are the least positively disposed to potential managerial implications associated with brand value accounting. This result is particularly interesting as brand value accounting has commanded considerable attention from the U.K. accounting profession since the late 1980s when several large U.K. companies elected to capitalize brand values in their external financial statements. In addition to the international differences noted, the degree of commonality of findings across the three countries is also noteworthy. The data reported provide strong support for the view that there is considerable potential for positive managerial implications from brand value accounting.

SAAS: Integrating Systems Analysis with Accounting and Strategy for Ex Ante Evaluation of IS Investments

For many companies, investment in information systems (IS) is one of the largest expenditures in the firms capital budget. An important goal of ex ante investment evaluation of an information system is to reasonably determine the return on investment (ROI) of the proposed information system. However, past research has shown that business managers have significant concerns about the soundness of ex ante ROI evaluations of information systems. This relates to the fact that several benefits of an IS are intangible and nonfinancial. In addition, it has long been recognized that, unlike many other capital projects, IS projects exhibit significant contextual interaction. Further, different professionals such as accountants and Information Technology (IT) personnel often use different approaches to evaluate a potential information system. This study develops a framework and methodology that integrates and accommodates the different perspectives of IT personnel, accountants, and business managers. We propose a f...

The Influence of Culture on Pension Plans

Abstract It is widely recognized that culture is a dimension affecting a vast array of management and social choices. However, we know little about the effect of culture on choices that combine both business and social issues in an accounting setting. Employee benefit choices by managers reflect both the business choices of a firm in the selection and retention of employees and social choices in the type and extent of benefits provided to employees. The objective of this study is to investigate the extent to which culture affects employee benefits as manifested in pension plans. In a comparison of plans that differ according to the home country of the parent firm and are offered in the regulated environment of the United States, results indicate an effect of culture on pension plan choices. In particular, culture plays a role in determining the funding level percentage of the plan, employer contributions receivable, and revenues received or receivable from employers.

A framework for international tax planning for managers

Abstract The purpose of this article is to summarize and illustrate the vast array of international taxation issues confronting managers of U. S.-based multinational firms. It is important for managers of multinational firms to consider these factors collectively to evaluate the most competitive choices for a firm in terms of tax policy. International tax planning is indeed a critical component of business strategy which requires attention from managers of all functional areas in the firm. This article provides an overview of the tax planning strategy process, a description of the various components of international taxation, and establishes a framework for managers to analyze emerging issues in international tax planning.