【报告主题】The Value-Relevance of Short-window Fluctuations in Brand Perception
【主讲嘉宾】魏思静，克雷顿大学会计学副教授
【报告时间】2024年12月17日 10:00
【报告地点】会计学院106室
【内容提要】
This study extends prior research on the value-relevance of brand values and brand indicators by examining whether investors also incorporate the volatility of these measures into their stock valuations. We begin by defining brand value volatility as short-term fluctuations in brand perceptions and examining the industry, firm, and individual-level determinants of these fluctuations. Our findings suggest that firms experience greater volatility in consumer perceptions when they are smaller, invest less in marketing, face higher competition, and are more sensitive to changes in their consumer base and consumer behavior. In the main analysis, We findwe find that the volatility in brand perception weakens the positive relationship between brand perception and stock prices, indicating that the market discounts more volatile brand perceptions. The volatility in brand perception is not associated with systematically lower future payoffs to brand perception but is associated with more volatile future sales and earnings, providing a plausible explanation for the investor discount. The investor discount of more volatile brand perceptions is attributable to stocks owned by a higher proportion of institutional investors (particularly, transient institutional investors), who are most likely to have access to and to trade on alternative data from which the volatility in brand perception can be inferred in the absence of formal reporting requirements. In supplemental analysis of the debt market, volatility in brand perceptions weakens the negative (positive) association between brand perceptions and bond spreads (credit ratings), which indicates that debt market participants incorporate and adjust for the volatility of brand perceptions in their risk assessments and pricing decisions. Our evidence provides important insights for developing a comprehensive reporting model for brands and other intangible assets.