Brand Equity On Shareholder Value: The Regulatory Role Of Managerial Ownership

As an important part of corporate marketing value chain, brand equity has animportant impact on corporate value. This process is market capitalization, throughthis process, the brand and brand equity can achieve the transition from intangibleassets to the enterprise value. Meanwhile, the brand is a brand benefit Communityrelated to complex social phenomenon. In addition to businesses and consumers, thecommunity of interests also includes shareholders, corporate managers, employees,and other stakeholders. Different stakeholders work in different ways, through theirimpact on brand image and brand equity, and thus affect the enterprise value.However, previous studies have not considered these stakeholders. Therefore, it isnecessary to establish the impact model of brand equity for the enterprise value,exploring the internal and external factors (including the industries, the internalgovernance mechanisms, etc.), to provide guidance on the regulation mechanism ofthis effect, and the strategic decision of the Chinese enterprises.Based on the previous theoretical results, we set up the conceptual model of therelationship between corporate value and managerial ownership variable, to study theimpact of the brand equity to the enterprise value, and from the perspective ofcorporate governance to explore management layer holding as an adjustment variableon the main effect of regulation, and these effects may be differences betweendifferent industries.We use World Brand Lab evaluation data on the brand value as the measurement ofbrand equity, organize the managerial ownership variables and other control variables,and collect data of stake of the management and other control variables, according tothe annual report data through the A-share listed companies CSMAR database. Wecollected7years data from2004to2010, using Eviews6.0to panel analysis of thedata, verify that the proposed assumptions.The empirical results show that:(1) brand equity can be positive influence on theenterprise value;(2) brand equity of managerial ownership will affect the value ofmain effects from the negative regulation;(3) the company’s main business where theindustry will adjust the brand equity value for the enterprise. Based on the aboveempirical results, this paper explained the theory and reality, and part of specificmanagement recommendations. Due to various constraints, this study still remains some limitations, which werediscussed in the last part of this paper. With reference to these limitations, furtherresearch directions have also been presented.