Research On The Effect Of Internet Brand Simplified Personality On Firm Value

Over the past decade, many internet companies earned high market value caused by listing, which attract great concern in the academic circle. Recently, it’s a hot topic of building the internet brand. On one hand, It’s a new trend for internet brand to shape a simple personality in order to win good user experience. On the other hand, as joint-stock companies, the internet companies listed have to meet the demand of consumers in product market and achieve the support of investors in capital market. Would internet brand personality of simplicity win the recognition of users and increase more brand loyalty in product market? Would internet brand personality of simplicity influence investors’ behaviors in capital market? And how does it work? These problems are urgent for internet brand to solve in the process of finding effective ways to improve the firm value.In this study, 38 famous internet brand are used as sample. We summarize the previous research firstly. And in the basis of the market-based assets theory, and brand equity theory, we summarize the relationship between brand asset, customer asset, enterprise value and shareholders’ return. And in consider of the characteristics of internet industry, we construct the research framework of the relationship between internet brand personality of simplicity and firm value with the normative analysis, and the factors of brand loyalty, R&D expenditures are also considered. And then we do the analysis of statistics and correlation, and test hypothesis of moderator and mediator.After the empirical examine, we find the positive relationship between internet brand personality of simplicity and users’ brand loyalty, which moderated by R&D expenditures, that is the continuous large R&D expenditures could avoid customer losses, and increase more loyal customers. And users’ high brand loyalty has a positive effect on firm value. Finally, we find internet brand personality of simplicity has a positive effect on firm value, which can be mediated by users’ brand loyalty.