IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-319-68762-9_19.html
   My bibliography  Save this book chapter

Measurement of Profit Losses from Brand Damage: The Case of an Unlisted Company

In: The Impact of Globalization on International Finance and Accounting

Author

Listed:
  • Tomáš Krabec

    (University of Economics, Prague)

  • Romana Čižinská

    (ŠKODA AUTO University)

Abstract

This paper deals with the measurement of profit loss stemming from the unfair competition and its negative impact on the brand value of the company ABC Holding in the Czech Republic. Profit loss is the difference of wealth between the state, what the party suffering the damage (unfair competition) achieved, and what it would achieve if the damage did not occur. It is therefore a foregone gain of property which was prevented by the harmful event. Assets (wealth) of the owner of ABC Holding suffering the damage represent the value of its 100% stake in the company, which includes the value of the brand ABC. Therefore, for the purposes of quantifying lost profits in this paper, we first need to quantify the value of the brand ABC affected by the consequences of a damage event and the hypothetical value of the brand ABC under the ordinary course of things. For appraising the fair value of a brand of an unlisted (private) company in this paper, we apply the Verifiable Interdependent Model (VIM), which has been designed specifically for the conditions of the business environment with the lack of empirical data for intangible assets appraisal or their low quality.

Suggested Citation

  • Tomáš Krabec & Romana Čižinská, 2018. "Measurement of Profit Losses from Brand Damage: The Case of an Unlisted Company," Springer Proceedings in Business and Economics, in: David Procházka (ed.), The Impact of Globalization on International Finance and Accounting, pages 173-180, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-68762-9_19
    DOI: 10.1007/978-3-319-68762-9_19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-3-319-68762-9_19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.