Empirical Research on Value Relevance between B2B Brand Valuation and Market Value

Abstract

In this paper, we analyzes the relationship between brand value and market value in Japanese companies. As a proxy for brand value, we use the corporate brand index BBES measured by the survey method using business card network information. One of the characteristics of BBES is that only the persons who hold business cards: the persons who have business relations with the surveyed company, are included in the survey. This feature of BBES allows measurement of brand power and reputation of B2B companies with low general awareness. The purpose of this paper is to statistically verify whether this BBES data shows a positive association with market value as a proxy for brand value. Empirical analysis for Japanese companies revealed that brand value by BBES additionally explains the market value given the information on net assets and profits. The explanatory power showed a high value especially in B2B companies.