| 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. |