(Financial Brand Value Calculation With Hirose Method: An Ampirical Analysis in Istanbul Stock Exchange)

Abstract

Purpose – In this study, it is aimed to measure brand value that addresses both marketing and finance. The brand concept has an important position for both businesses and consumers. Brand; While making the products of the enterprises determinant in the eyes of the consumers, it is one of the most important factors in the decision-making and purchasing process for consumers. For this reason, the brand has an increasing financial value and is now included in the assets of enterprises as an intangible asset. Hirose method, which contributes to the literature, is preferred both to reach healthy results by working with numerical data and to be away from subjective judgments. Design/methodology/approach – Çalışmada marka değeri ölçümü yapabilmek için Hirose yöntemi kullanılmış ve Hirose yöntemiyle elde edilen sonuçlar Brand Finance raporlarıyla karşılaştırılmıştır. Findings – In the study, the brand value calculation by Hirose method was made for the banking sector. The sample of the research is the banks registered in Istanbul Stock Exchange for 5 years in the banking sector between 2014-2018. As a result of the analysis; financial brand value based to Hirose method, while Garanti Bank is the best bank, Development Bank of Turkey is the worst bank. According to the Brand Finance report; Akbank is the highest brand value while Industrial Development Bank of Turkey is the lowest brand value. Discussion – Within the scope of the results, it was found that there are many methods in the calculation of brand value, but the methods can give different results. The results of Hirose method and Brand Finance reports were similar but not identical. The main reason is that while Hirose method is calculated with financial statement data, Brand Finance reports include consumer behavior as well as financial data of firms. The originality of the study is that both Hirose method is not used in the banking sector and it is determined by the Hirose analysis that the brand value interpretation in the Brand Finance reports is insufficient for the banking sector.