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An Empirical Assessment of the Influence of Brand Accounting on Mergers and Acquisitions Decision Effectiveness

Year: 2026

Type: article

Abstract: This study examines the influence of brand accounting on mergers and acquisitions (M&A) decision effectiveness, with a focus on four key dimensions: brand accounting practices, brand valuation practices, brand accounting information, and disclosure of brand-related intangible assets. The study adopted a quantitative research design, employing structured questionnaires to collect data from professionals involved in corporate acquisitions. Using multiple regression analysis, the study assessed the impact of each brand accounting dimension on merger and acquisition decision-making. The results reveal that all four dimensions positively and significantly influence merger and acquisition decision effectiveness. Specifically, brand accounting practices (β = 0.518, p < 0.05), brand valuation practices (β = 0.518, p < 0.05), brand accounting information (β = 0.445, p < 0.05), and disclosure of brand-related intangible assets (β = 0.497, p < 0.05) were all found to enhance the quality of acquisition decisions. These findings underscore the critical role of intangible assets, particularly brand-related resources, in informing strategic corporate decisions. The study confirms that systematic measurement, valuation, and disclosure of brand assets not only improve the accuracy of acquisition evaluations but also reduce information asymmetry, enhancing the likelihood of successful merger and acquisition outcomes. The findings are consistent with the Resource-Based View (RBV), which posits that firms gain competitive advantage by leveraging valuable and unique resources. The study therefore recommends that firms should establish formal frameworks for measuring, recording and reporting brand related assets. Keywords: Brand Accounting, Brand Valuation Practices, Brand Accounting Information, Disclosure of Intangible Assets, Mergers and Acquisitions, Decision Effectiveness

Source: Issues in Contemporary Accounting and Business

DOI: 10.67199/8kb32108

Authors: AMA KALU IKWUO, OKOI ETIM IWARA, OBOH JOHN OGENYI, ODAMA PATRICK OJEKA, CHARITY IFEANYI-OKORO

Institutions: University of Calabar, Rhema University

Language: English

Topic: Intellectual Capital and Performance Analysis

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

OpenAlex ID: W7225230186

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