The explanatory power of appraised brand values on stock prices in the financial services sector

Andras Takacs

International Journal of Business Excellence, 2015, vol. 8, issue 3, 298-311

Abstract: This study investigates the relation between per share brand values and stock prices in the financial services industry. Two regression models are developed and tested on a sample of 51 company years, using the brand values published by Millward Brown for the period 2008-2012 as independent variables - and as both contemporaneous and future stock prices as dependent variables. The test results indicate that the appraised brand value per share is closely associated with both the current and the future stock prices, with explanatory powers of 70% and 67% respectively. The contribution of this research to current literature lies in its special focus on financial services companies, as no earlier studies have been found which have carried out a similar examination in this particular industry. The results provide useful information for managers by showing clearly the positive financial effects of efficient brand management.

Keywords: brand valuation; non-financial performance measures; predictive power; financial services; brand values; stock prices; brand management. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:8:y:2015:i:3:p:298-311

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