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International Co-Branding and Firms Finance Performance

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  • Hengameh Fakhravar
  • Hesamoddin Tahami

Abstract

Co-branding has become a widely used marketing strategy, yet little attention has been paid to its impact on a firm's stock value. Prior literature has shown that using a co-branding strategy properly helps firms leverage the brand value and equity. We discussed the theoretical foundations and main accomplishments of prior studies. We developed a conceptual framework and hypothesis to close the existing research gap in the topic of interest. We argued that co-branding event announcement generates positive abnormal returns in the stock market. Furthermore, we investigated the moderating impact of co-branding structure on the relation between co-branding event announcements and abnormal returns. We claimed that higher co-branding integration, greater co-branding exclusivity, and longer co-branding duration generate a greater positive abnormal return for the partnering firms.

Suggested Citation

  • Hengameh Fakhravar & Hesamoddin Tahami, 2022. "International Co-Branding and Firms Finance Performance," Papers 2202.07128, arXiv.org.
    • Handle: RePEc:arx:papers:2202.07128
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    References listed on IDEAS

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