Effect of brand value announcements on stock returns: empirical evidence from Turkey

This study examines the effects of brand value announcements on stock returns of Turkish firms by using the event study methodology and long-term risk adjusted port-folio returns. We examined the stock-price impacts of 299 brand value announcements on the stock market performance of the firms within...

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Bibliographic Details
Published in:Journal of business economics and management 2016-12, Vol.17 (6)
Main Authors: Pinar Basgoze, Yilmaz Yildiz, Selin Metin Camgoz
Format: Article
Language:English
Subjects:
brand value
brand value announcement
emerging markets
event study analysis
stock returns
Turkey
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Summary:This study examines the effects of brand value announcements on stock returns of Turkish firms by using the event study methodology and long-term risk adjusted port-folio returns. We examined the stock-price impacts of 299 brand value announcements on the stock market performance of the firms within the years of 2010–2014 by using BrandFinance Turkey’s 100 ranking list as a data source. The findings indicate that the companies listed in the Turkey Top 100 Brands list earn positive abnormal returns 7 months after the announcement. Similarly, the companies which had greater brand values relative to the previous year, experienced significant positive abnormal returns in the 7-months period. Additional findings suggest that investors are able to beat the market in the long run regarding risk-adjusted returns by consistently investing in the Top Brands. Overall, the study demonstrates new evidence to the marketing-finance interface by focusing on the Turkish case as an important emerging market.
ISSN:1611-1699
2029-4433
DOI:10.3846/10.3846/16111699.2016.1153517