The Response of Stock Returns to the Brand Value Announcements

The aim of this study was to investigate how did the stocks of the firms, listed in the top 10 brand value list of Turkey, priced before and after the brand value announcements. In this context the adjusted stock prices of the firms entered the annual list of Turkey’s first 10 most valuable brands announced by Brand Finance and the daily data of the BIST100 index were utilized for the period of 2012 and 2017. Event study methodology was employed for the analysis. After the analysis, statistically significant and positive reactions of the investors to the brand value announcements were observed substantially in the first years. In other words, in the light of the information that generally the same firms were listed from the beginning of the announcements, in the following years the possibility to have abnormal returns by investing in the stocks that possibly will enter to the list of most valuable brands decreased. It can be asserted that this might proceed from the reflection of information to the prices by the time of progress