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Brand and Firm Value: Evidence from Arab Emerging Markets

Author

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  • Musaab Mousa

    (Doctoral School of Economic and Regional Sciences, Szent István University, Páter Károly u. 1, 2100 Gödöllő, Hungary)

  • Judit Sági

    (Faculty of Finance and Accountancy, Department of Finance, Budapest Business School, Buzogány u. 10-12, 1149 Budapest, Hungary)

  • Zoltán Zéman

    (Faculty of Economic and Social Sciences, Szent István University, Páter Károly u. 1, 2100 Gödöllő, Hungary)

Abstract

This study aims to estimate the impact of brand as the most important intangible marketing asset on firm value, measured by share return in some Arab emerging market, as well analyze the moderating role of agency costs in the relationship between share return and brand. We use the Ohlson model of valuation with a sample of the most traded companies on four markets under study. The panel data regression results show a significant impact of brand on return as well as agency costs that promote the valuation model power, meaning that good corporate governance increases the degree of marketing investment efficiency in value creation. Our findings support the literature relating to the residual earnings valuation model. Furthermore, the results confirm the informative content of marketing application besides the traditional accounting figures as a promising approach for firm valuation.

Suggested Citation

  • Musaab Mousa & Judit Sági & Zoltán Zéman, 2021. "Brand and Firm Value: Evidence from Arab Emerging Markets," Economies, MDPI, vol. 9(1), pages 1-13, January.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:1:p:5-:d:478850
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    References listed on IDEAS

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