Brand Capital and Stock Price Crash Risk: evidence from firm’s Reputation Protection Incentive

Brand Capital and Stock Price Crash Risk: evidence from firm’s Reputation Protection Incentive

Subject Areas : Financial Knowledge of Securities Analysis

Khonaka Abdolkhalegh ^{1 *} , Abolfazl Momeni Yanesari ² , Ali Kamizi ³

1 - Assistant professor of Accounting, faculty of Humanities & Physical Education, Gonbad Kavous University, Gonbad, IRAN.
2 - Assistant professor of Accounting, faculty of Humanities & Physical Education, Gonbad Kavous University, Gonbad, IRAN.
3 - Ph.D. Student of Accounting, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, IRAN

Received: 2023-08-28 Accepted : 2023-09-19 Published : 2025-03-18

Keywords: Brand Capital, Stock Price Crash Risk, Stock Price,

Abstract :

Brand capital, as an important intangible asset of the firm plays a major role in unlocking the business potential of a firm by expanding its market share, developing customer loyalty, increasing engagement with stakeholders, retaining talented employees, attracting investment, and differentiating a firm and its products in the market. capital market literature shows that as brand capital increases, the visibility and public awareness of firms’ operating and innovation activities increases. In this regard, the present study was conducted with the aim of investigating the effect of brand capital on firm’s stock price crash risk. to do so, a sample of 119 firms listed in Tehran Stocks Exchange during the time period 2018 – 2022 was selected and the research hypothesis was empirically tested using the multivariate linear regression analysis based on panel data technique, the research findings reveal that firms with higher brand capital are exposed to less stock price crash risk.