Journal of the Academy of Marketing Science

, Volume 34, Issue 2, pp 224-235

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

  • Thomas J. MaddenAffiliated withUniversity of South Carolina
  • , Frank Fehle
  • , Susan FournierAffiliated withBoston University

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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