Abstract:

In the globalizing world, information, products and services have become easily accessible and can act quickly. With increasing transaction volumes, developing technology and economy in financial markets, it is increasingly important for companies to have high brand value and market value. It is no longer enough to manufacture and supply products. Therefore, companies that become brands and create brand value rather than producing the product provide a competitive advantage. The concept of brand provides the opportunity to be distinguished from others in the most basic sense. However, this concept also meets the intangible needs of the consumer today. It is important for companies to create customer loyalty and create a sense of trust in the brand in terms of their competitive power. These tough competition conditions and changing consumer behaviors force companies to brand in order to be well positioned in the market, and thus, branding provides the opportunity for companies to be distinguished from their competitors in the most basic sense. Building a strong brand is extremely important for high market value and market share. The high valuation of market value for companies is welcomed by investors, managers and shareholders. In this context, in the study, firstly, previous studies in the literature were mentioned, and then the concepts of brand and brand value were briefly explained. In the study, the causal relationship between the brand values and market values of the companies with high brand value was investigated. The causality relationship between the brand values and market values of 37 companies traded in Borsa Istanbul for the 2016-2020 periods was examined. In the results of the analysis, it has been revealed that there is a bidirectional causality relationship between the brand values of the companies and their market values.

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