Brands matter: An empirical demonstration of the creation of shareholder value through branding

  • Thomas J. Madden
  • Frank Fehle
  • Susan Fournier

DOI: 10.1177/0092070305283356

Cite this article as:
Madden, T.J., Fehle, F. & Fournier, S. JAMS (2006) 34: 224. doi:10.1177/0092070305283356


This research responds to the attendant need for empirical evidence pertaining to how marketing affects firm performance. Using the Fama-French method, common in finance, and a leading marketplace measure of a brand’s financial equity value, the authors provide empirical evidence for the branding-shareholder value creation link. The results extend previous research by showing that strong brands not only deliver greater returns to stockholders than does a relevant benchmark but do so with less risk This finding holds even when market share and firm size are considered.


shareholder value brand equity brand value portfolio analysis brand strategy 

Copyright information

© Academy of Marketing Science 2006

Authors and Affiliations

  • Thomas J. Madden
    • 1
  • Frank Fehle
  • Susan Fournier
    • 2
  1. 1.University of South CarolinaUSA
  2. 2.Boston UniversityBostonUSA

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