CORRELATION BETWEEN BRAND VALUE AND STOCK PRICE OF TOP FIVE BANKS REVENUES IN INDONESIA

Abstract

A brand is a distinguishing name and symbol (such as a logo, trade-mark, or package design) intended to identify the goods or servics of either one seller or a group of seilers, and to differentiate those goods or service from those competitors. A brand thus signals to the customer the source of the product, and protects both the customer and the producer from competitor who would attemptt to provide porducts that appear to be identical. Although brands have long had a role in commerce, it was not until the twentieth century that branding and brand associations became so central to competitors (Aaker, 2009). This study to aim the correlation between brand value and stock price. the researcher want to analyst is that any correlation between brand value and stock price. To get that correlation firstly researcher calculating brand value of each company and compare it with their stock price fluctuation. This research focused on secondary data analysis that found from existing research, financial statement, article, books and other trusted sources. To calculate brand value researcher use discounted cash flow method that found by interbrand. This study Show the correlation between brand value and stock price. Biggest brand value don’t only base on their asset, role of brand index very impact to brand value. it mean that higher brand value that got high trust from the customers. Brand value also correlate reversed with stock price fluctuation. When brand value of the company high it means that stock price fluctuation is smooth because the trusted of customers / investor give significant impact of their stock price fluctuation. This study helpful for investor to being their buying decision because the investor can buy the stock with low investment risk.