The portfolios with strong brand value: More returns? Lower risk?

BANK S., Yazar E. E., SİVRİ U.

BORSA ISTANBUL REVIEW, vol.20, no.1, pp.64-79, 2020 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 20 Issue: 1
  • Publication Date: 2020
  • Doi Number: 10.1016/j.bir.2019.09.001
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, EconLit, Directory of Open Access Journals
  • Page Numbers: pp.64-79
  • Recep Tayyip Erdoğan University Affiliated: Yes


This study focuses on the brand value-shareholder return relationship using the approach of Madden et al. (2006) based on Aaker (1991) and compares "Strong Brands Portfolio", created through brand values in "Turkey's Most Valuable Brands" annual report of Brand Finance published between 2007-, 2015, within alternative benchmark portfolio in terms of risk and return. In this context, although the analysis made by different weighting methods over asset pricing models has found that a portfolio of strong brands may provide significant abnormal returns with significantly lower market risk for shareholders, it is understood that the brand values published by Brand Finance are not fully priced in the Turkish stock market by considering the magnitude of that value. Copyright (c) 2019, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V.