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Brand equity of stock exchange as a mediator in financial decisions

Author

Listed:
  • Betül Çal

    (Giresun University)

  • Mary Lambkin

    (University College Dublin)

Abstract

The aim of this study is to investigate investors’ brand equity perception for a stock exchange as a mediator in financial investment decisions. An online survey is conducted in two samples in the developed market context of Ireland and developing one of Turkey. Results indicate that although investors’ risk perception has a negative impact on investment decisions, this impact is partially mediated by brand equity of stock exchanges in question. This mediating effect further differs by the market context, with a larger effect size in the developing Turkish market. It can be concluded that although developing markets face higher volatility in macroeconomic conditions, it could be possible to spread the risk resulting from this volatility with an effective brand equity management, which is found to be especially important in developing markets. The study offers some practical implications to policy makers and managerial sides regarding the need for a careful perception management aimed at individual investors.

Suggested Citation

  • Betül Çal & Mary Lambkin, 2017. "Brand equity of stock exchange as a mediator in financial decisions," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 22(1), pages 14-23, March.
    • Handle: RePEc:pal:jofsma:v:22:y:2017:i:1:d:10.1057_s41264-017-0016-7
    DOI: 10.1057/s41264-017-0016-7
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