International Journal of Financial Management

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Brand Valuation in the Mobile Communications Industry in Iran, Based on Brand Valuation Models


Affiliations
1 Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran., Iran, Islamic Republic of
2 Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran, Iran, Islamic Republic of
     

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By offering the possibility of accepting the financial value of a brand as a bank guarantee, clear brand value is an advantage in obtaining facilities. Iran’s mobile communications industry consists of 3 companies, Hamrah-e-Aval, Irancell and RighTel. These companies have always faced many limitations in the stock exchange market and transactions because of the uncertainty of the value of the company’s brand and assets. Therefore, this study aimed to find a suitable brand valuation model, using the Topsis method, to determine the financial value of the brands in Iran’s mobile communications industry. Financial information was collected from the Tehran Stock Exchange, the companies’ financial experts, and related questionnaires. The valuation model was selected using the Topsis method, and 2 models, intangible business and brand finance, were used for the valuation of the brands. The findings of the research’s main model (intangible business) indicated that about 78.1%, 74.6%, and 70% of the stock value (market value) of Hamrah-e-Aval, RighTel and Irancell, respectively, are related to their brands. The results indicate that there is a need to create the necessary accounting infrastructure to insert intangible assets in financial statements through promoting national accounting standards.

Keywords

Brand, Brand Valuation, Mobile Communication Industry, Intangible Business Model, Brand Finance Model, Topsis Model
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  • Brand Valuation in the Mobile Communications Industry in Iran, Based on Brand Valuation Models

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Authors

Mohammad Aghaei
Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran., Iran, Islamic Republic of
Ali Ghasemian Sahebi
Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran, Iran, Islamic Republic of
Rahil Kordheydari
Department of Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran, Iran, Islamic Republic of

Abstract


By offering the possibility of accepting the financial value of a brand as a bank guarantee, clear brand value is an advantage in obtaining facilities. Iran’s mobile communications industry consists of 3 companies, Hamrah-e-Aval, Irancell and RighTel. These companies have always faced many limitations in the stock exchange market and transactions because of the uncertainty of the value of the company’s brand and assets. Therefore, this study aimed to find a suitable brand valuation model, using the Topsis method, to determine the financial value of the brands in Iran’s mobile communications industry. Financial information was collected from the Tehran Stock Exchange, the companies’ financial experts, and related questionnaires. The valuation model was selected using the Topsis method, and 2 models, intangible business and brand finance, were used for the valuation of the brands. The findings of the research’s main model (intangible business) indicated that about 78.1%, 74.6%, and 70% of the stock value (market value) of Hamrah-e-Aval, RighTel and Irancell, respectively, are related to their brands. The results indicate that there is a need to create the necessary accounting infrastructure to insert intangible assets in financial statements through promoting national accounting standards.

Keywords


Brand, Brand Valuation, Mobile Communication Industry, Intangible Business Model, Brand Finance Model, Topsis Model

References