IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v9y2021i1p401-414.html
   My bibliography  Save this article

Mapping the strategic landscape for global financial institutions through brand equity trend analysis

Author

Listed:
  • Ishtiaq Ahmed Bajwa

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Kamran Ahmed Siddiqui

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Tarig Eltayeb

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

  • Chaudhry Kashif Mahmood

    (Imam Abdulrahman Bin Faisal University, Saudi Arabia)

Abstract

This paper aims to present the strategic landscape for global financial institutions through a trend analysis for Interbrand's top 100 global brands. The study used longitudinal data of 20 years (2001 to 2020) from the top 100 global brands published by Interbrand annually. Analyses are based on Interbrand's brand equity ($ millions), annual brand ranking, and annual growth in brand equity using descriptive statistics. This research provides three significant findings. Firstly, it supports the country of origin's effect on top Financial Institutions. American financial institutions were always ahead of financial institutions from other countries. European banks have a relatively higher growth rate. Secondly, this research proposes three clusters of global financial institutions. Leaders include financial institutions that appeared in Interbrand's Global brand list for at least 15 years during 2001-2020 and having minimum brand equity of USD 8.0 billion in 2020. Challengers include financial institutions that appeared in Interbrand's global brand list for at least five years during 2001-2020; and having minimum brand equity of USD 7.0 billion in 2020. Extinct include financial institutions that appeared in Interbrand's global brand list at least once during 2001-2020 but not listed for the last eight years. Finally, this paper presents the effects of the global financial crisis (2008) and global pandemic (2020) on financial institutions. The global financial crisis (2008-9) deeply affected the global banking industry. Many banks were forced to close, and governments had to bail them out. The financial stocks were crushed, and many of them were slashed. The collapse of the US financial system caused many investors to lose their money. The brand equity of financial institutions has the most significant decline. While the global pandemic crisis (2019-20) completely halted the world's economy for many months, the bank's brand equity was not severely affected. Although in 2019-20, there was a decline in the growth rate of the financial sector's brand equity compared to all other sectors, the cumulative brand equity of the financial sector was constantly on the rise. These findings have implications for practitioners and academicians to understand better the underlying patterns and changes in top global financial institutions' brand equity and devise the appropriate strategies. In addition, the findings invite future research on probing the reasons behind the drastic changes in the brand equity of various global financial institutions in the last two decades.

Suggested Citation

  • Ishtiaq Ahmed Bajwa & Kamran Ahmed Siddiqui & Tarig Eltayeb & Chaudhry Kashif Mahmood, 2021. "Mapping the strategic landscape for global financial institutions through brand equity trend analysis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 401-414, September.
    • Handle: RePEc:ssi:jouesi:v:9:y:2021:i:1:p:401-414
    DOI: 10.9770/jesi.2021.9.1(25)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/33/Bajwa_Mapping_the_strategic_landscape_for_global_financial_institutions_through_brand_equity_trend_analysis.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/878
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2021.9.1(25)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Haselmann, Rainer & Tröger, Tobias, 2021. "When and how to unwind COVID-support measures to the banking system?," SAFE White Paper Series 83, Leibniz Institute for Financial Research SAFE.
    2. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    3. Elnahass, Marwa & Trinh, Vu Quang & Li, Teng, 2021. "Global banking stability in the shadow of Covid-19 outbreak," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 72(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    2. Blanco Callejo, M, 2007. "LA VENTA DE LA ILUSIÓN Y “LA BRUJA DE ORO”: EL EMBRUJO DE UN CÍRCULO VIRTUOSOi /," Investigaciones Europeas de Dirección y Economía de la Empresa (IEDEE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 13(3), pages 33-56.
    3. Villalonga, Belen, 2004. "Intangible resources, Tobin's q, and sustainability of performance differences," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 205-230, June.
    4. Galil, Koresh & Varon, Eva, 2024. "National culture and banks stock volatility," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    5. Albina Kalimashi & Driton Balaj, 2023. "COVID-19 Impact on the Capital Structure of Commercial Banks: Evidence from the Western Balkans," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 76-88.
    6. Juan Luis Nicolau, 2001. "Parametric And Nonparametric Approaches To Event Studies: An Application To A Hotel'S Market Value," Working Papers. Serie AD 2001-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Guo, Wen-Chung & Tseng, Ping-Lun, 2023. "COVID-19, bank risk, and capital regulation: The aggregate shock and social distancing," The Quarterly Review of Economics and Finance, Elsevier, vol. 92(C), pages 155-173.
    8. Dirk Crass & Dirk Czarnitzki & Andrew A. Toole, 2019. "The Dynamic Relationship Between Investments in Brand Equity and Firm Profitability: Evidence Using Trademark Registrations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 26(1), pages 157-176, January.
    9. Mostafa Monzur Hasan & Grantley Taylor & Grant Richardson, 2022. "Brand Capital and Stock Price Crash Risk," Management Science, INFORMS, vol. 68(10), pages 7221-7247, October.
    10. Nicolau, Juan L., 2012. "The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case," Omega, Elsevier, vol. 40(5), pages 503-510.
    11. Glynn, Mark S., 2012. "Primer in B2B brand-building strategies with a reader practicum," Journal of Business Research, Elsevier, vol. 65(5), pages 666-675.
    12. Rasoul Azadi & BAHRAM YOUSEFI & HOSSEIN EYDI, 2016. "The Impact of the sponsorship in the Sport in promoting brand equity of sportswear industry," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 4(2), pages 19-32, May.
    13. Ataman, B.M., 2007. "Managing brands," Other publications TiSEM 462dcbba-2ac1-46d1-a61c-f, Tilburg University, School of Economics and Management.
    14. Baumert, Thomas & de Obesso, María de las Mercedes, 2021. "Brand antiquity and value perception: Are customers willing to pay higher prices for older brands?," Journal of Business Research, Elsevier, vol. 123(C), pages 241-254.
    15. Ana Sofia Branca & Maria Rosa Borges, 2011. "The Impact of Corporate Rebranding on the Firm‟s Market Value," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 1(4), pages 175-175.
    16. Rian Beise-Zee, 2022. "Brand equity retention after rebranding: a resource-based perspective," Journal of Brand Management, Palgrave Macmillan, vol. 29(2), pages 208-224, March.
    17. Xi, Nannan & Hamari, Juho, 2020. "Does gamification affect brand engagement and equity? A study in online brand communities," Journal of Business Research, Elsevier, vol. 109(C), pages 449-460.
    18. Gächter, Martin & Huber, Florian & Meier, Martin, 2022. "A shot for the US economy," Finance Research Letters, Elsevier, vol. 47(PA).
    19. Yoo, Boonghee & Donthu, Naveen, 2001. "Developing and validating a multidimensional consumer-based brand equity scale," Journal of Business Research, Elsevier, vol. 52(1), pages 1-14, April.
    20. Shabir, Mohsin & Jiang, Ping & Wang, Wenhao & Işık, Özcan, 2023. "COVID-19 pandemic impact on banking sector: A cross-country analysis," Journal of Multinational Financial Management, Elsevier, vol. 67(C).

    More about this item

    Keywords

    trend analysis; brand equity; financial institutions;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:9:y:2021:i:1:p:401-414. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.