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

Yilmaz Yildiz, Selin Metin Camgoz

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


The aim of this article is to investigate the relationship between brand equity and firm risk in Turkey using a sample of 254 firm-year observations for the period 2009–2014. Our findings suggest that brand equity is an important determinant of equity risk in addition to conventional firm-specific variables. In particular, after controlling for firm-specific variables, the results reveal that firms with high brand equity experience lower volatility in stock returns. We also find that enhancing brand equity is an important tool for firms in reducing unsystematic and downside systematic risk in their stock prices. Our findings are robust to different valuation models of domestic and global investors as well as different methods of estimations. The results are encouraging for both marketing managers and investors, particularly those in emerging markets where stock price volatility is relatively higher than in developed markets.

Original languageEnglish
Pages (from-to)218-235
Number of pages18
JournalEmerging Markets Finance and Trade
Issue number1
Early online date27 Jul 2018
Publication statusPublished - 2 Jan 2019
Externally publishedYes


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