Corporate Brand and Stock Returns

Maria do Carmo de Carvalho Rodrigues Rodrigues, Magali Pedro Costa, Lígia Catarina Marques Febra


Purpose: The brand stands out for its ability to differentiate competing firms, contributing to the definition of the strategy and the good positioning of the entities. Firms with high brand value standards experience higher chances of keeping a sustained superior performance over the course of time. In this way, it is important to analyse the impact of corporate brand on returns and on risk.

Design/Methodology/Approach: In order to understand if the firm's brand influences the abnormal returns and the systematic risk, we estimated an adaptation of CAPM model based on firms' financial market data through a panel data analysis which included 28,031 firm-year observations, which occurred between 2007 to 2017, from a full sample of 367 firms, relative to 14 countries and 9 industries. Regarding the methodology, the model used in this study is characterized by the determination of risk-adjusted returns which estimation period coincides with the test period.

Findings: The results indicate, contrary to what it was expected, that firms with higher ranking in BRANDFINANCE undergo lower abnormal returns when compared to those firms with low ranking. With regard to the systematic risk the results evidence that there is no significant difference in the systematic risk between firms with high ranking in BRANDFINANCE and firms with low ranking.

Research limitations: This study has two known limitations. The first is the size of the population (30 top financial institutions (distributed among deposit money banks, insurance and investment companies). This is regarded as small compare to the total population. Second, the study concentrated on a sub-sector of Nigeria economy. Result may vary if other sectors affected by the treasury single accounts exercise are included in the study.

Originality/Value: We believed that the use of market data and the methodology used is a contribution to the literature.


Keywords: Corporate brand; Returns; Financial performance; Abnormal returns; Systematic risk




Title: "Marca corporativa e retorno das ações"


Objetivo: A marca destaca-se pela capacidade de diferenciar empresas concorrentes, contribuindo para a definição da estratégia e o bom posicionamento das entidades. Empresas com altos padrões de valor de marca experimentam maiores chances de manter um desempenho superior sustentado ao longo do tempo. Assim, é importante analisar o impacto da marca corporativa nos retornos e nos riscos.

Design/metodologia/abordagem: Para entender se a marca da empresa influencia os retornos anormais e o risco sistemático, estimamos uma adaptação do modelo CAPM com base nos dados do mercado financeiro das empresas por meio de uma análise de painel que incluiu 28.031 observações por ano da empresa, que ocorreu entre 2007 e 2017, de uma amostra completa de 367 empresas, relativa a 14 países e 9 indústrias. Em relação à metodologia, o modelo utilizado neste estudo é caracterizado pela determinação de retornos ajustados ao risco cujo período de estimativa coincide com o período de teste.

Resultados Os resultados indicam, ao contrário do esperado, que as empresas com classificação mais alta em BRANDFINANCE sofrem retornos anormais mais baixos quando comparadas às empresas com classificação baixa. Com relação ao risco sistemático, os resultados evidenciam que não há diferença significativa no risco sistemático entre empresas com alta classificação em BRANDFINANCE e empresas com baixa classificação.

Limitações: Este estudo tem duas limitações conhecidas. O primeiro é o tamanho da população (30 principais instituições financeiras (distribuídas entre bancos depositários, seguradoras e empresas de investimento), considerado pequeno em comparação com o total da população. Segundo, o estudo concentrou-se em um subsetor da economia da Nigéria O resultado pode variar se outros setores afetados pelo exercício de contas únicas do tesouro forem incluídos no estudo.

Originalidade/Valor: Acreditamos que o uso de dados de mercado e a metodologia utilizada é uma contribuição para a literatura.


Palavras-chave: Marca corporativa; Retorna; Desempenho financeiro; Retornos anormais; Risco sistemático


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