Firm Profitability Reaction to Brand Value

In each industry brand value is one of the most important intangible assets that can be well-managed in a way to get more market share and profitability. Since, brand value can have a significant impact on sale and also subsequently on profitability of the firm, this study aims to investigate the relationship between profitability and brand value of the firm. Brand value can be studied from two perspective contains of marketing and financial aspect. So that, in this research Q-Tobin, as one of the measure of calculating the brand value from financial aspect, is used. The sample includes firms from Pharmaceutical, Food, Metals, Petrochemical and Cement industry between the years 1384 to 1393. In order to test our hypothesis, panel data method (by Eviews software) is used. Our results show that brand value has meaningful and positive impact on Pharmaceutical and Food industry firms’ profitability but there was no evidence of meaningful impact on Metals, Petrochemical and Cement industry.