BEST GLOBAL BRANDS AND FINANCIAL PERFORMANCE

Donald Lien ； Hsiang-Hsi Liu ； Pi-Hsia Hung ； Ching-Yang Chen

《Advances in Investment Analysis and Portfolio Management》 10期 (2020/12) Pp. 73-129

https://doi.org/10.6291/AIAPM.202012_(10).0004

摘要

Using the best global brands (BGBs) provided by Interbrand during 2000 to 2018, this paper examines the relationships between the world's most valued brands and their financial performance. Specifically, we first analyze whether BGBs affect the cash flow stability of firms and then evaluate the relationships between BGBs and risk-adjusted returns as well as idiosyncratic risk. The empirical results yield the following new findings. Target firms that have been listed as BGBs display higher stability of subsequent operating cash flows than their matching firms after the first year being listed. Current-year BGB firms are able to further decrease their cash flow volatility. Target firms also perform better compared to their matching firms after controlling for both firm- and country-level characteristics. After controlling other factors, current-year BGB firms themselves do not have lower subsequent idiosyncratic risk. Lastly, target firms incorporated in countries with higher research and development expenditure have better performance than other firms.

關鍵字

Brand Value ； Branding Strategy ； Cash Flow Volatility ； Idiosyncratic Risk ； Risk-Adjusted Returns

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