The value relevance of brand equity in the financial services industry: an empirical analysis using quantile regression

摘要

The purpose of this article is twofold. First, it attempts to explore the factors contributing to the brand values of Taiwan’s financial service companies. Second, it aims to examine the value relevance of their brand equity. Our empirical findings from OLS regression show that advertising expenditure in banking firms have positive significant effects on brand evaluation and that the brand equity of banking firms is positively related to their market value. The general findings remain valid when we apply conditional quantile regressions to re-examine these relationships. Moreover, the quantile estimates indicate that the factor of brand loyalty could bring benefits to the banks with lower levels of brand equity. However, brands do not offer insights into the banks that have extremely low market capitalization.