Research Of Corporate Brand Based On Investor Relations Perspective

In recent years, more and more companies with famous brand have listed, somenew problems are appearing in front of the managers. As joint-stock enterprises, listedcompanies must meet demands come from customers and investors. By many yearsoperating and accumulating, these well-known brand companies have won therecognition of consumers in product market and achieved higher brand reputation.Would these brand influence accumulated in product market affect capital marketinvestment behaviors? What is the influence mechanism？How to effectively usethese effects for the company value creation? These kinds of problems are the urgentneed to be addressed.Based on literature review, the paper combing the normative analysis andempirical research method, using the information asymmetry theory and companymarketing theory, constructed the research framework from the investor relationsperspective. The main research conclusions as followed:1.This study is based on information asymmetry theory and company marketingtheory. Information asymmetry theory is the mechanism of the study. The companymarketing theory provides the thinking and operation guide for the research. Thispaper focus on the signal transfer function of company brand in the capital marketbased on investor relations perspective. The purpose of this is to improve thecompany value by reducing information asymmetry between the listed companies andtheir investors.2.The value of company brand has a positive impact on company value. Brandhas been the most important research topics in the field of marketing. Corporateperformance is the most important content of the financial and corporate governanceresearchers. The paper combined the two different areas issues into a unifiedframework and used normative research, theoretical analysis and empirical researchmethods to research the relationship between company brand value and corporatevalue. First, we derived the theoretical relationship between the company value, thenet assets of the company and the intangible assets of the corporate using the net income model of Ohlson（1995）. This conclusion became the foundation of theresearch about relationship between company brand value and the corporate value.Then, we empirically tested the above relationship. The research selected106listedcompanies on The6th China’s500Most Valuable Brands. The study found thecompany brand value and corporate value is significant positive correlation. Therelationship between corporate brand value and corporate value rely on stock turnover.Acted as a shareholder behavioral variable, stock turnover played the role ofintermediary variable. Company brand value as a signal of company’s productsmarket which released by the third-party intermediaries is Important reference forshareholders to assess the value of the company. The information of corporate brandvalue can alleviate the information asymmetry between listed companies andinvestors.3.The annual report is an important way to communicate information betweenlisted companies and investors. But the communication effect of the annual report isnot significant. Based on The6th China’s500Most Valuable Brands. Paper found that19of106listed corporate companies had disclosured information of corporate brandvalue by the annual report. The proportion is only17.9%. We used parametric testsand non-parametric test for paired samples. Conclusion is that T-test and z-test resultsof markets value-added （MVA）, the value of Tobin’s Q （TQ） and earnings pershare （EPS） of the paired samples are not significant. The average of the pairedsamples is not significant difference. That mean weather the information of corporatebrand value is disclosed by the annual report not affect the company value. Based on116listed companies samples selected from The6th China’s500Most ValuableBrands, we found that the relationship between the level of investor relationsinteractive communication and market value-added presents a U-shaped. Theinteractive communication channels used by these companies can be divided into twocategories: The investor relations interactive communication channels based oninternet, including websites investor hotline, Investor-mail, investor forums, onlineroadshow etc. The second category is face-to-face communication channel, includingperformance seminar, performance report, roadshow, investor conference, analystmeeting, the press conference, investors meeting, visit investor and so on. Study shows that the network interactive communication channels ratio is significantlyhigher than face-to-face interaction communication channels.4.In this paper, the factor analysis method is used to build Company BrandInvestor Relations Interactive Communication Index. Then we explored therelationship between the index and the value of the company. The results show thatthe level of company brand investor relations interactive communication of The6thChina’s500Most Valuable Brands is low. There is larger difference betweencompanies. Companies listed on Shenzhen Stock Exchange and Shanghai StockExchange is not significant difference on interactive communication channels. But inpermanent network interaction（F2）, companies listed on Shanghai Stock Exchange isbetter than those listed on Shenzhen Stock Exchange. Aspects of active interaction（F3）and media interaction（F4）, companies listed on Shenzhen Stock Exchange arebetter than companies listed on Shanghai Stock Exchange. Further multipleregression analysis showed that the relationship between Company Brand InteractiveCommunication Index（S）and market value-added is U-shaped.