Journal of the Academy of Marketing Science

, 34:224

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 valuebrand equitybrand valueportfolio analysisbrand 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