Brand Equity and Firm Risk: An Empirical Investigation in an Emerging Market

2018 ◽  
Vol 55 (1) ◽  
pp. 218-235
Author(s):  
Yilmaz Yildiz ◽  
Selin Metin Camgoz
Keyword(s):  
Brand Equity ◽  
Empirical Investigation ◽  
Emerging Market ◽  
Firm Risk

Debt financing puzzle and internationalization

2019 ◽  
Vol 13 (1) ◽  
pp. 33-56 ◽  
Author(s):  
Karren Lee-Hwei Khaw
Keyword(s):  
Multinational Corporations ◽  
Emerging Market ◽  
International Perspective ◽  
Debt Financing ◽  
Primary Concern ◽  
Firm Risk ◽  
Content Type ◽  
Financial Decisions ◽  
Business Operations

PurposeThis study aims to examine the relation between long-term debt and internationalization in the presence of the agency costs of debt and business risk.Design/methodology/approachSample firms consist of 517 non-financial listed firms in Malaysia, with 4,197 firm-year observations from the year 2000 to 2014. This study uses panel data regressions and a series of robustness tests to examine the hypotheses.FindingsThe results show that multinational corporations (MNCs) are more likely to sustain less long-term debt than domestic corporations (DCs) to mitigate the costs related to agency problem and firm risk. Meanwhile, foreign-based MNCs maintain less long-term debt than local-based firms, and the finding is more significant at a higher degree of internationalization. Robustness tests confirm the negative relations.Research limitations/implicationsThe findings indicate that the ongoing debate on the debt financing puzzle can be explained by internationalization. Moreover, the findings suggest that in addition to the systematic differences between MNCs and DCs, studies on the debt financing and internationalization should also account for the systematic differences among MNCs such as the local-based MNCs, foreign-based MNCs and DCs that later expand their business operations abroad.Practical implicationsMNCs have to be responsive to the diverse institutional environments as they diversify their business operations geographically. When the adverse effects of internationalization outweigh the benefits, MNCs could use the long-term debt financing decision to mitigate the costs of doing business abroad. This is because debt financing is also a primary concern in the corporate financial decisions for the maximization of shareholders’ wealth.Originality/valueThis study contributes to the debt financing literature from the international perspective by providing evidence from an emerging market. In addition, this study highlights the importance of recognizing firms by their firm-specific characteristics, such as internationalization, given the systematic differences among firms.

scholarly journals Corporate Social Responsibility Disclosure and Its Effect on Firm Risk: An Empirical Research on Vietnamese Firms

2021 ◽  
Vol 13 (22) ◽  
pp. 12933
Author(s):  
Cao Thi Mien Thuy ◽  
Nguyen Vinh Khuong ◽  
Nguyen Thanh Liem
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Voluntary Disclosure ◽  
Emerging Market ◽  
Listed Companies ◽  
Policy Implications ◽  
Firm Risk ◽  
Research Perspective ◽  
Csr Disclosure ◽  
Corporate Social

The purpose of the study was to gather empirical evidence on the influence of corporate social responsibility (CSR) disclosure on firm risk of Vietnam’s publicly listed companies. We used adjusted OLS estimation and regression analysis with adjusted panel data for heteroskedasticity and/or autocorrelation to analyze the correlation using data from 225 listed companies on Vietnam’s stock market from 2014 to 2019. The study’s sample period is relatively recent in the emerging market, especially considering regulatory differences and the availability of voluntary disclosure requirements. The findings of research on the relationship between CSR and corporate risk are mixed, particularly in developing markets. Research findings reveal a negative and significant association between CSR and firm risk, implying that stronger CSR performance lowers a company’s risk. This aims to strengthen a research perspective of this connection in emerging countries. Following that, we discuss some policy implications for listed firms and regulators in CSR disclosure.

Empirical Investigation of Relationship Among Destination Brand Equity Dimensions

2019 ◽  
Vol 10 (3) ◽  
pp. 74-90
Author(s):  
Vikrant Kaushal ◽  
Suman Sharma ◽  
Nurmahmud Ali
Keyword(s):  
Brand Equity ◽  
Empirical Investigation ◽  
Structural Model ◽  
Perceived Value ◽  
Perceived Quality ◽  
Destination Image ◽  
Mediating Role ◽  
Equation Modelling ◽  
Destination Brand

The concept of destination brand equity remains an intriguing area for scholars and practitioners, yet an empirical investigation of its structural composition and interrelationship among its constituent dimensions remains inadequate. This study proposes a theoretical model where in addition to assessing a model adequacy, mediation analysis has been carried out with the help of structure equation modelling. Specifically, it investigates the interplay among five crucial dimensions of destination brand equity: destination brand awareness, destination image, perceived quality, perceived value, and tourist loyalty. A structural model with mediating role of perceived value dimension has been empirically verified for an Indian tourism destination. The results indicate that perceived value is central to the realisation of impacts of destination image and perceived quality on loyalty shown by the tourists toward the destination. Drawing on the results of the analyses several implications have been put forward.

Consumer-Based Brand Equity and Firm Risk

2009 ◽  
Vol 73 (6) ◽  
pp. 47-60 ◽  
Author(s):  
Lopo L. Rego ◽  
Matthew T. Billett ◽  
Neil A. Morgan
Keyword(s):  
Brand Equity ◽  
Firm Risk

Impact of Sales Promotion’s Benefits on Brand Equity: An Empirical Investigation

2018 ◽  
Vol 19 (6) ◽  
pp. 1663-1680 ◽  
Author(s):  
Somesh Kumar Sinha ◽  
Priyanka Verma
Keyword(s):  
Brand Equity ◽  
Brand Loyalty ◽  
Empirical Investigation ◽  
Positive Influence ◽  
Sales Promotion ◽  
Brand Awareness ◽  
Brand Association ◽  
Equation Modelling ◽  
Research Findings ◽  
The Impact

Sales promotion is known for providing additional benefits to the consumers and these benefits may have an impact on the development of consumer-based brand equity. Although previous studies have reported a positive influence of sales promotion on brand equity, but the impact of sales promotion’s benefits (i.e., hedonic and utilitarian benefits) on brand equity is less understood. This study examined the possible influence of sales promotion’s hedonic and utilitarian benefits on four components of brand equity (i.e., brand awareness, brand association, perceived quality and brand loyalty). A model is proposed to show the relations between sales promotion’s benefits and component of brand equity. This study includes a sample of 265 consumers of fast-moving consumer goods from Madhya Pradesh state in India. A covariance based structure equation modelling technique was used for data analysis and interpretation. Research findings revealed that the utilitarian benefit of sales promotion has maximum impact on brand loyalty, while the hedonic benefit of sales promotion has maximum impact on brand association. It provides a way of utilizing the benefits of sales promotion to create and support brand equity. Hedonic benefits of sales promotion can be utilized to make consumers associated with the brand, while utilitarian benefits of sales promotion can be utilized to enhance a repeat purchase of the brand.

scholarly journals The Complementary Effects of Islam and CSR: Some Empirical Evidence

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Calvin W. H. Cheong ◽  
Nurul Ilma Salleh ◽  
Chorng Yuan Fung
Keyword(s):  
Corporate Social Responsibility ◽  
Business Ethics ◽  
Financial Performance ◽  
Emerging Market ◽  
Firm Risk ◽  
Islamic School ◽  
Reasonable Approximation ◽  
Market Sample ◽  
Corporate Social ◽  
Made In

This paper empirically investigates what has been claimed in the literature; that there are no significant differences between the Islamic and Western schools of business ethics. A proxy for the Western school is corporate social responsibility (CSR) while in the Islamic school, a reasonable approximation would be Shariah-compliance (SC). But because financial performance is not the main priority in CSR and SC, this study examines the effects CSR and SC has on firm resilience and firm risk. The regression estimates using an emerging market sample show that both CSR and SC improves firm resilience besides reducing firm risk in the following year. The findings empirically validate the claims made in the literature; that business ethics, Islamic or otherwise, are similar in substance and form. By empirically examining this claim, this study paves the way for a convergence of values and practices besides fostering greater unity between cultures.

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