The Impact of Brand Quality on Shareholder Wealth

This study examines the impact of brand quality on three components of shareholder wealth: stock returns, systematic risk, and idiosyncratic risk. The study finds that brand quality enhances shareholder wealth insofar as unanticipated changes in brand quality are positively associated with stock returns and negatively related to changes in idiosyncratic risk. However, unanticipated changes in brand quality can also erode shareholder wealth because they have a positive association with changes in systematic risk. The study introduces a contingency theory view to the marketing-finance interface by analyzing the moderating role of two factors that are widely followed by investors. The results show an unanticipated increase (decrease) in current-period earnings enhances (depletes) the positive impact of unanticipated changes in brand quality on stock returns and mitigates (enhances) their deleterious effects on changes in systematic risk. Similarly, brand quality is more valuable for firms facing increasing competition (i.e., unanticipated decreases in industry concentration). The results are robust to endogeneity concerns and across alternative models. The authors conclude by discussing the nuanced implications of their findings for shareholder wealth, reporting brand quality to investors, and its use in employee evaluation

Economic & Financial Modelling: Summer 2021

Volume 28 Number 2Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers

Economic & Financial Modelling: Spring 2020

Volume 27 Number 1Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of non-modellers

Economic & Financial Modelling: Spring 2021

Volume 28 Number 1Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers

Economic & Financial Modelling: Autumn 2020

Volume 27 Number 3Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers

Economic and financial modelling

Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers. Papers published in this journal are all refereed. Papers submitted to the journal should be sent in triplicate to the European Economics and Financial Centre, Senate House, Malet Street, London WC1 E 7HU, UK

Economic & Financial Modelling: Winter 2020

Volume 27 Number 4Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers

Economic & Financial Modelling: Summer 2020

Volume 27 Number 2Economic & Financial Modelling presents recent advances in all aspects of economic modelling. It is intended that the journal should act as a forum for new developments in different aspects of economic and financial modelling - covering national macroeconomic models and related topics; models of international trade; general equilibrium, microeconomic and econometric simulation models; methodological aspects of model building; dynamic games, rational and adaptive expectations; and reports in areas including finance, agriculture, energy and natural resources. It is also one of the aims of this journal to bring closer the work of economic modellers to that of nonmodellers