Abstract
PurposeThe purpose of this paper is to investigate the effect of stock exchange-related brand equity on intention to invest and the mediating role of perceived risk (PR) in this relationship in a comparative analysis between a developed and a developing market.Design/methodology/approachThe study is carried out through an online survey among financially literate adults in two countries, Turkey and Ireland. Structural equation modeling is used to empirically test the relationships between brand equity dimensions and intention to invest, with a mediating role of PR.FindingsThe results indicate that the brand equity of a stock exchange is a relevant construct that significantly influences intention to invest. Also, the mediating role of PR is found to be strong in a developing market such as Turkey, but weak in a developed market like Ireland.Research limitations/implicationsOne limitation of this paper is its inclusion of individual investors as the unit of analysis while leaving out institutional ones. The second limitation is the difficulty in generalizing the results to overall country populations.Practical implicationsThis paper offers managerial implications regarding the need for emphasizing “stock exchange brand,” besides corporate brands traded, and customizing the management of brand-related influencers in investment decisions according to country context.Originality/valueThe impact of corporate brands in investment choices has been demonstrated before, but the influence of intermediaries – stock exchanges – through which investments are transacted, has not yet been investigated. This study addresses this gap, and further shows the differing extent of PR in this relationship between a developed and a developing country setting.
Published Version
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