Relationship between Brand Equity and Corporate Governance Disclosures: A Study of Top 20 Brands in India

Abstract

This study examines the relationship between brand equity and corporate governance of firms by using disclosures as the measure of corporate governance. Top 20 Indian brands have been tested using correlation and regression to examine the association and relationship between their brand equity and their corporate governance disclosure score. The study revealed significant correlation between overall corporate governance disclosure and brand equity for the year 2016. Strength of Board Committees was the only corporate governance component that showed significant correlation with brand equity. Regression revealed significant relationship between overall corporate governance disclosure score and brand equity with 33 per cent variation in brand equity explained by overall corporate governance disclosure Score for 2016. Investor Relations explained for 40 per cent variation in Brand Equity in 2016. Not all aspect of corporate governance however impacts brand equity. Strong brand management with effective corporate governance can be one of the means to achieve enhanced Brand Equity.