The Correlation Research Of Company’s Brand Equity Value And Stock Price

Brand equity is an important component of total company assets, and also is one of the company’s most valuable assets. The listed company’s stock price is a reflection of company value, so the increase or decrease in company’s brand equity value should be reflected in the company’s stock price, in other words, the brand equity value could affects the company’s stock price. The relevance research of brand equity value and the stock price is mainly focused in western countries. A large number of studies have shown that the brand equity value of listed companies in western countries could affect the company’s stock price movements, and brand equity value is positively related to stock price, but the researches on the two factors are relatively little at home. The special conditions and economic environment background also determine the research results in western countries do not necessarily apply to our country, so this paper studies the correlation of brand equity value and the stock price based on the specific circumstances of our country.This paper conducts an empirical study on the relationship between brand equity value and stock price based on the overall perspective and industries perspective. There are three main variables involved that independent variable brand equity value, intermediary variable corporate profit and dependent variable stock price. The brand equity value data are mainly from" China’s500most Valuable Brands" report released by World Brand Lab, stock price data from Yahoo Finance, Eastern wealth network and stock exchange, corporate profit data from China Business Network and annual report of listed companies. This paper establishes panel data model using data from2004to2012, applies the regression analysis in overall brands and industry brands by means the econometric software STATA. The results indicate that the brand equity value will positively affect the stock price, and corporate profit is the intermediary variable of brand equity value and stock price, at the same time, the industries influence the effects of brand equity value on stock price. For this study, this paper carries a relevant analysis, provides the reference and guidance for industry and corporate brand building.