Analysis Of The Impact Of Brand Value On Stock Returns In Domestic Listed Corporations

As the market’s competition become more and more fierce, the brand value has been concerned by more and more managers. The brand can not only help companies to divide themselves from the others, but can also minimize the damage which caused by the competition. A valuable brand can help the enterprises attract more consumers which is very likely to help the consumers to form a brand preference, finally the preference will raise frequency of purchasing and boost the sales of enterprises. Therefore, the importance of brand value to the enterprise is significant, Understanding the relationship between brand value and the enterprise correct can help enterprise built its own strong brand, and then enterprises can use the brand to get more benefits.This paper built a model about the influence of the brand value to the stock return which based on the theory of Consumer Behavior and Behavioral finance. Based on this model, this paper studied the impact of brand value on stock returns from the initial day of it’s IPO and the later period. In the later period of IPO, this paper studied the difference of the effect of brand value on stock return in oligopoly industry and competitive industry. Aiming at the particularity of distribution of return in IPO, this paper adopt quantile regression as the main method to test the impact of brand value on stock returns in IPO initial day, and we used comparative analysis with OLS. The main conclusions of this study are as follow:From the IPO initial day, the positive effect of brand value on stock returns is not established in the whole range, in low yield range and high yield range, the effect is positive and statistically significant, but in the left part, the effect is non-significant. The results show that brand value has positive effect on stock returns at five quantile points:0.1,0.3,0.4,0.5 and 0.9. Meanwhile, by comparing OLS with quantile regression, it is found that OLS underrates the impact of brand value on the stock yield of a new stock at the 0.3 and 0.9 quantile points and overrates the impact at the 0.1 and 0.5 quantile points. In the later period, we can generally say that brand value has positive effect on stock yield and the coefficient of correlation is 0.110. After comparing the oligopoly industry and competitive industry with the help of HHI index, we found that brand value has positive effect on stock return in competitive industries and the coefficient of correlation is 0.108. However, in oligopoly industry, the positive effect is non-significant. This result indicates that the industrial competitiveness will influence the relationship between the brand value and stock returns.