The Company’s Brand Evaluation on the Base of the Financial Markets’ Instruments

Finance, No. 7, 2007

15 Pages Posted: 1 Jun 2009 Last revised: 29 Jul 2010

See all articles by Magomet Yandiev

Magomet Yandiev

Moscow State University - Faculty of Economics

Date Written: May 30, 2009

Abstract

In this article we offer a principally new method of brand valuation. Let’s mention the bounds of application of this approach. The method can be used for the companies which have the brand, the mature market of the common shares and the market of share depositary receipt. The core of the method is that the return on equity of the branded company and the depositary receipt issued for the same share reflect different information volume. The digital value of this difference gives us the numerical prediction of the brand earnings or the valuation of the brand’s changes during some period. It appears that knowing the brand earnings is more useful for the brand management than the calculation of its absolute value because it allows observing the process dynamics including daily measurements although such frequent overseeing can be unnecessary.

Keywords: value of a brand, financial markets, information, capital structure, depositary receipts, common stocks

JEL Classification: F31, G15, G3, M3

Suggested Citation

Yandiev, Magomet, The Company’s Brand Evaluation on the Base of the Financial Markets’ Instruments (May 30, 2009). Finance, No. 7, 2007, Available at SSRN: https://ssrn.com/abstract=1412085

Magomet Yandiev (Contact Author)

Moscow State University - Faculty of Economics ( email )

1-46 Leninskiye Gory
Moscow, 119991
Russia
+79037699393 (Phone)

HOME PAGE: http://www.econ.msu.ru/departments/fincred/staff/M.I.Yandiev/

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