Almontaser Abdallah Mohammad Qadorah

Type of the article: Research Article

Abstract
In recent years, concerns over brand sustainability have gained attention in industrial markets, where financial decision-making and governance structures often prioritize operational efficiency over intangible assets. As industrial firms navigate competitive pressures and dynamic economic conditions, understanding the drivers of brand value erosion has become increasingly relevant. This study investigates whether sales growth, liquidity, and corporate governance influence brand decline in industrial firms listed on the Amman Stock Exchange in Jordan.
The analysis uses panel data covering the years 2014 to 2023, with a focus on variables extracted from audited financial statements. Brand decline is measured using operating margin as a financial proxy, while corporate governance is represented by board size and the number of independent directors. Liquidity is assessed through the current ratio, and sales growth is calculated annually.
The results reveal that liquidity has a statistically significant and positive effect on brand decline (coefficient = 0.071, p = 0.003), explaining approximately 2.4% of the variance. Corporate governance factors are jointly significant (F = 6.51, p = 0.002), accounting for 6.2% of brand decline variation, although individual components – board size and board independence – do not retain significance when entered together due to multicollinearity. Sales growth shows no significant effect on brand decline (p = 0.841).
These findings suggest that excess liquidity and governance structure can influence brand outcomes, while sales growth alone does not safeguard against brand erosion. Industrial firms must align financial and governance strategies with long-term brand management priorities.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU253311].