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Brand equity of stock exchange as a mediator in financial decisions

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Abstract

The aim of this study is to investigate investors’ brand equity perception for a stock exchange as a mediator in financial investment decisions. An online survey is conducted in two samples in the developed market context of Ireland and developing one of Turkey. Results indicate that although investors’ risk perception has a negative impact on investment decisions, this impact is partially mediated by brand equity of stock exchanges in question. This mediating effect further differs by the market context, with a larger effect size in the developing Turkish market. It can be concluded that although developing markets face higher volatility in macroeconomic conditions, it could be possible to spread the risk resulting from this volatility with an effective brand equity management, which is found to be especially important in developing markets. The study offers some practical implications to policy makers and managerial sides regarding the need for a careful perception management aimed at individual investors.

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Acknowledgements

This research is supported by the Scientific and Technological Research Council of Turkey (TÜBİTAK), within the grant of Graduate Scholarship Program for Ph.D. Students (2214-A).

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Authors and Affiliations

  1. Department of Business Management, Giresun University, 28100, Giresun, Turkey

    Betül Çal

  2. Smurfit Graduate Business School, University College Dublin, Blackrock, Co Dublin, Ireland

    Mary Lambkin

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  1. Betül Çal
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Correspondence to Betül Çal.

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Çal, B., Lambkin, M. Brand equity of stock exchange as a mediator in financial decisions. J Financ Serv Mark 22, 14–23 (2017). https://doi.org/10.1057/s41264-017-0016-7

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