Company’s Strategic Management Study Based On Brand Equity Valuation

This paper uses the case study methods from theories of asset valuation, based on Fama French Three-Factor Model(1992), in combination of Singfat Chu(2006) and others’research methods, concerning differential industrial, internal, and external markets in the opening economic environments, a multiple linear regression model has been built. Then find out the appropriate brand equity valuation method and the corresponding effective mechanisms between it and the company’s strategic managerial effects. Research results show that under the new normal economy, brand equity valuation is as the important push power of economic development, it plays a main function in the company’s developing process; Related factors in the present earning value method, the current market value method, and the replacement cost method has remarkable effects on brand equity valuation process; Results of the model shows that the market’s reflection has an constant significant positive correlation on brand equity, while financial cost and company scale’s influences are uncertain, either positive or negative. Therefore, to improve reliability and achieve preferential company strategic managerial effects, the present earning value method is one of the reasonable methods. We should win the market recognition and make the market-oriented enterprise strategic managerial policies.Based on existed literatures, this paper’s significant and innovations are as bellow: First, from study perspectives, existed studies are almost about one or two methods in the equity evaluation theories, rarely combines the three logics about equity evaluation, not to say concerning company’s strategic managerial effects. Most studies about the current market value methods are using questionnaires, this paper will not use them. Second, from logics and structures, to analyze the issue, based on multiple linear regression model, considered market differential factors concerning industrial, internal and external markets, use different risk free rate in different markets. As far as the author knows, literatures in China are rarely about multiple linear regressions in considered with differential market risk free rate, in combination about three logics in equity valuation, this paper will have a try. Third, from brand equity model’s analysis, this paper combines financial costs, market return, and differential market factors in equity valuation theory.