EFFECT OF BRAND VALUE ANNOUNCEMENTS ON STOCK RETURNS: EMPIRICAL EVIDENCE FROM TURKEY


BAŞGÖZE P. , Yildiz Y., METİN CAMGÖZ S.

JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT, cilt.17, ss.1252-1269, 2016 (SSCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 17 Konu: 6
  • Basım Tarihi: 2016
  • Doi Numarası: 10.3846/16111699.2016.1153517
  • Dergi Adı: JOURNAL OF BUSINESS ECONOMICS AND MANAGEMENT
  • Sayfa Sayıları: ss.1252-1269

Özet

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 portfolio 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.