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THE EFFECT OF BRAND EQUITY ON CASH FLOW, FINANCIAL PERFORMANCE AND COMPANY VALUE IN INDONESIA

. Endang Karyawati , Taher Al Habsyi, Nila Firdausi Nuzula & Ari Darmawan


Abstract

This study aims to analyze the effect of brand equity on cash flow, financial performance and firm value. The type of research used is quantitative research, the samples taken in this study are sub-sector consumption companies listed on the Indonesia Stock Exchange in 2015-2019 and meet the requirements for calculating the brand value of the Hirose method. PLS analysis in this study was carried out using warpPLS. That high brand equity is able to convince consumers of the quality of the products they buy, can maintain sales stability and ultimately improve financial performance. In conclusion, brand equity has a significant effect on cash flow, but not significant on firm value and financial performance has an effect on firm value. Future research must understand the relationship between brand equity and financial policies such as capital structure and company growth.

Keywords :  Brand Equity, Cash Flow, Financial Performance, Corporate Value, Business

 

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