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Effect of brand value announcements on stock returns: empirical evidence from Turkey

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  • Pinar Basgoze
  • Yilmaz Yildiz
  • Selin Metin Camgoz

Abstract

This study examines the effects of brand value announcements on stock returns of Turkish firms by using the event study methodology and long-term risk adjusted port-folio returns. We examined the stock-price impacts of 299 brand value announcements on the stock market performance of the firms within the years of 2010–2014 by using BrandFinance Turkey’s 100 ranking list as a data source. The findings indicate that the companies listed in the Turkey Top 100 Brands list earn positive abnormal returns 7 months after the announcement. Similarly, the companies which had greater brand values relative to the previous year, experienced significant positive abnormal returns in the 7-months period. Additional findings suggest that investors are able to beat the market in the long run regarding risk-adjusted returns by consistently investing in the Top Brands. Overall, the study demonstrates new evidence to the marketing-finance interface by focusing on the Turkish case as an important emerging market.

Suggested Citation

  • Pinar Basgoze & Yilmaz Yildiz & Selin Metin Camgoz, 2016. "Effect of brand value announcements on stock returns: empirical evidence from Turkey," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1252-1269, November.
    • Handle: RePEc:taf:jbemgt:v:17:y:2016:i:6:p:1252-1269
    DOI: 10.3846/16111699.2016.1153517
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