Drivers’ estimation of the luxury companies

Varvara Nazarova (), Golovina Olga (), Volosatova Ksenia () and Yarusova Ksenia ()
Additional contact information
Varvara Nazarova: National Research University Higher School of Economics
Golovina Olga: National Research University Higher School of Economics
Volosatova Ksenia: National Research University Higher School of Economics
Yarusova Ksenia: National Research University Higher School of Economics

DECISION: Official Journal of the Indian Institute of Management Calcutta, 2022, vol. 49, issue 1, No 7, 105-128

Abstract: Abstract One of the important financial issues for the public companies is how to achieve the most optimal way to maximize firm value and shareholder wealth in a competitive environment. Another problem is connected with the search for an efficient method of the evaluation of social media mood impact on companies’ values as it creates their image and reputation. The paper aims to investigate the impact of financial indicators and news related to enterprise on luxury companies’ performance. Luxury industry is chosen as an object of the study as it has a range of specifics, which can cause the changes in the variables’ effects. To accomplish the purpose of the research, the authors design fixed-effects regression models on a sample of 45 European, Asian and American luxury companies for the period 2010–2019 and conduct sentiment, correlation and Granger-causality analyses using the extracted Twitter data. The results show that net margin, return on investments, total revenue, earnings per share, current ratio and asset turnover have a significant positive effect on the luxury companies’ market capitalization, while total debt percentage of total equity influences negatively and significantly. The study also finds that participation in M&A and luxury companies’ location have a significant impact on their market capitalization. Various impacts within the specifics of luxury sectors are also established for the sample examined in this research. Furthermore, strong relationships between news background and companies’ performance are discovered.

Keywords: Companies’ performance; Market capitalization; Financial ratios; News background; Luxury industry (search for similar items in EconPapers)
JEL-codes: C21 G34 L1 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40622-021-00296-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:decisn:v:49:y:2022:i:1:d:10.1007_s40622-021-00296-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/40622

DOI: 10.1007/s40622-021-00296-4

Access Statistics for this article

DECISION: Official Journal of the Indian Institute of Management Calcutta is currently edited by Rajesh Babu

More articles in DECISION: Official Journal of the Indian Institute of Management Calcutta from Springer, Indian Institute of Management Calcutta
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().