Effect of brand value on firm value: An ampirical practice on global businesses

Brand concept, which is listed among intangible assets, has become quite important in the recent years since it plays an effective role in the body of firms and it is also considered as a part of firm value. Improvements that are made in technology, increasing rate of communication and rapid distribution of information minimized the differences between goods and services. As a result of the increase in competition and decrease in differences, brand concept has begun to be the most effective strength of businesses. From the perspective of a firm, creation of brand and brand value is a strategic investment that may bring high amount of income in long term. Although the effect that a brand makes on share prices and firm value is usually avoided, it must be considered that the expenses that are incurred for a brand increase sales of the business, brand value and share prices. In this study, we aim to study the effect that the brand values of the firms, which own global brands and which operate in different sectors, makes on market values. Firms, which operate in different factors, which are included repeatedly, between 2001 and 2012, to the "Top 100 Global Brands" list announced by Interbrand every year, and whose data may be obtained completely, constitute the sample of the study. Data that are used in the study are obtained from Interbrand and Datastream, and Panel Regression Method is used to analyse data. From the results of eight different regression models, we observed that the brand value of firms makes a positive and statistically significant effect on share prices. Furthermore, it is also determined that one year lagged impact of brand value makes a positive effect on shares.