Research on Function Paths of Brand Equity on Firm Value——the Moderating Effect of Industry Concentration
HAN Hui-lin1,2, ZHUANG Fei-peng3, SUN Guo-hui4
1. College of Business Administration, Capital University of Economics and Business, Beijing 100070, China; 2. Academy of “One Belt One Road” Strategy, Beijing International Studies University, Beijing 100024, China; 3. School of Economics and Management, Beijing Information Science & Technology University, Beijing 100192, China; 4. Business School, Central University of Finance and Economics, Beijing 100081, China
Abstract：
Based on the data of “China’s 500 most valuable brands” released by the world brand laboratory and the corresponding data form Shanghai and Shenzhen Stock Exchange markets, this paper aims to research the function path of brand equity on firm value from the perspectives of product markets and capital markets. The results show that brand equity can positively improve firm value, and can achieve this goal by the way of increasing the enterprise’s cash flow and reducing the cost of capital. This study also finds that the more intense competition in the industry becomes, the more significant the effect of brand equity is on increasing cash flow and reducing cost of capital. These conclusions not only enrich the literature of brand equity, but also provide empirical evidence for enterprises to implement brand strategies.
HAN Hui-lin, ZHUANG Fei-peng, SUN Guo-hui. Research on Function Paths of Brand Equity on Firm Value——the Moderating Effect of Industry Concentration[J] Economic Survey, 2017,V34(3): 117-122
2017 
