A Study On The Influence Of Brand Value To The Performance Of The Company's Stock Market

Since the 1990 s,the pace of globalization of the world economy has accelerated,China has become a major driver of the wave of economic globalization since joining the World Trade Organization,We can see China's important contribution to world economic integration.The globalization of the economy will inevitably lead to more fierce market competition,and the company will usher in new opportunities and challenges.In the face of this situation,more and more companies have begun to choose to increase their market value by increasing the value of their brand Therefore,what kind of brand value it means to the company and how to enhance the company's brand value are becoming topics that are closely discussed by the company's management.Against this background,this article relies on the list of "China's 500 Most Valuable Brands" published by "World Brand Lab" to explore the impact of listed company brand value on its stock market performance.This article first reviews the existing research results from the two aspects of the impact of corporate brand value on corporate performance and the impact of corporate brand value on corporate stock prices,and summarizes and summarizes them.Secondly,this article proposes four research hypotheses around the list of "China's 500 Most Valuable Brands" based on the theoretical basis of the efficient market hypothesis,the information asymmetry theory,and the signal theory.Compared with the company,it will reflect a higher return on the stock price;Hypothesis 2 based on Hypothesis 1 did further research on the listed companies on the brand value list,thinking that for the companies on the list,If the proportion of its intangible assets in its brand value is greater,the company 's stock return will also be greater;because in the existing research,research on the company 's brand value and its stock market performance has focused on stock prices,Therefore,Hypothesis 3 and Hypothesis 4 respectively study whether listed companies are on the brand value list and the relationship between stock price volatility and stock turnover.They also hope to prove whether the open market information of the brand value list will affect stocks.The market plays a stabilizing role.Thirdly,this article takes China's A-share listed companies from 2004 to 2018 as the research sample,and based on the list of "China's 500 Most Valuable Brands",conducts preliminary verification of the hypothesis through descriptive statistics,Wilcoxon rank sum test and Pearson correlation analysis,And tested by OLS multiple linear regression model.The final research results in this article believe that compared with companies that are not on the list,listed companies on the brand value list will have higher cumulative excess returns before and after the list is announced,which indicates that investors in the market are acquiring brands.The value list information will reflect this information into the stock price.The study also found that for a company in the list,the higher the ratio of its intangible assets to its brand value,that is,the larger the proportion,the higher the cumulative excess return rate before and after the list's announcement date.The greater the proportion of intangible assets in its brand value,the greater the company's ability to transform brand value into intangible assets,so investors will prefer companies with a higher proportion.At the same time,the research in this paper finds that due to the announcement of the brand value list,companies in the brand value list will have lower stock price volatility and stock daily turnover rate in the next six months than companies that are not on the list.This shows that the favorable information on the brand value list increases the information that investors will hold stably in the future,which can further prove that the "China's 500 Most Valuable Brands" list has a stabilizing effect on China's stock market.Finally,in combination with the research results of this article,the article finally gives some enlightenment from the perspective of strengthening the brand value construction of companies,hoping to provide suggestions for the brand value construction of companies.