The Value of Brand:Brand Capital and Corporate Earnings Management
Brand capital,as a vital intangible asset,has a profound influence on firms'financial decision-makings.Utilizing The National Tax Survey data from 2010 to 2016,and on the basis of es-timating enterprise brand capital with perpetual inventory method,this paper empirically examines the impact of brand capital on corporate earnings management and its mechanisms.The findings indicate that corporate brand capital can suppress the earnings management behavior of corporate management.The analysis of the mechanism of action shows that brand capital has financial effects,reputation ef-fects,and supervisory effects,thus brand capital can suppress management's earnings manipulation be-haviors.Further analysis reveals that this inhibitory effect of brand capital on earnings management is more pronounced in enterprises with higher complexity and those belonging to the consumer goods in-dustry.The analysis of economic consequences indicates that the inhibitory effect of brand capital on earnings management can enhance the value of the enterprise.Therefore,the relevant government de-partments should support enterprises to implement brand strategy,constantly improve the policies and supporting measures related to corporate brand strategy,thus promote the high-quality development of enterprises.
万方数据
维普
