The influence of brand trust on firm financial performance and risk metrics

This study examines the relationship between brand trust and a firm’s financial performance. Utilizing data on 101 public companies from 2016 to 2023, our findings reveal that companies with elevated brand trust levels are associated with stronger financial performance as measured by the net income to sales ratio – a common proxy for a firm’s net profit margin. Our results further suggest that firms considering brand trust initiatives may benefit from first identifying the specific financial outcomes they wish to improve.