Exploiting the Value of Idiosyncratic Intangible Resources: The Effects of Strategy and Brand Capital on Shareholder Value

This research examines the relationship among firm strategies, brand capital and shareholder value. Using a sample of single product manufacturing firms, results suggest that under certain conditions, the intangible value contained in a firm’s brand capital is a valuable firm resource that can be measured and exploited to increase shareholder returns. However, firms with large amounts of brand capital realized negative shareholder returns when trying to exploit brand capital in new ways. Results suggest that managers should be cautious of efforts to use existing intangible resources (brand capital) in new ways if these resources are already highly valued.