Advanced

Does it really matter? - A look at how branding strategies affect the return after an IPO

Friberg, Ebba LU ; Ekman, Felix and Sjöstrand, Hanna (2016) FEKN90 20161
Department of Business Administration
Abstract
Theoretical perspective: The study is based on previous literature that discusses the main theories of the study; brand architecture, product/brand focus, brand portfolio strategy, underpricing and information asymmetry. Furthermore, it aims to combine the branding and finance theories to advance the understanding of the effects of different branding strategies in IPOs as it is not a common field of research today.

Methodology: A quantitative study with a deductive approach is combined to create a regression analysis of branding and finance values. The data is collected through secondary sources and with content analysis in an event study. A test-retest is conducted to ensure inter-observation consistency.

Empirical findings: The... (More)
Theoretical perspective: The study is based on previous literature that discusses the main theories of the study; brand architecture, product/brand focus, brand portfolio strategy, underpricing and information asymmetry. Furthermore, it aims to combine the branding and finance theories to advance the understanding of the effects of different branding strategies in IPOs as it is not a common field of research today.

Methodology: A quantitative study with a deductive approach is combined to create a regression analysis of branding and finance values. The data is collected through secondary sources and with content analysis in an event study. A test-retest is conducted to ensure inter-observation consistency.

Empirical findings: The results show that a house-of-brands architecture and hybrid architecture have a strong negative effect on returns. The opposite goes for business-to-consumer brand portfolio segmentation and having 6-15 brands in a brand portfolio, which show positive effects on return.

Conclusion: We advise investors with a short investment time frame to acquire shares in IPOs of firms that have business-to-consumer brand portfolio segmentation and 5-16 brands in a brand portfolio. Furthermore, we advise investors to not invest in firms with either a house-of-brands architecture or a hybrid brand architecture. (Less)
Please use this url to cite or link to this publication:
author
Friberg, Ebba LU ; Ekman, Felix and Sjöstrand, Hanna
supervisor
organization
course
FEKN90 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Initial public offering, Brand portfolio strategy, Product and brand focus, Brand architecture, Underpricing
language
English
id
8889021
date added to LUP
2016-09-13 15:27:13
date last changed
2016-09-13 15:27:13
@misc{8889021,
  abstract     = {Theoretical perspective: The study is based on previous literature that discusses the main theories of the study; brand architecture, product/brand focus, brand portfolio strategy, underpricing and information asymmetry. Furthermore, it aims to combine the branding and finance theories to advance the understanding of the effects of different branding strategies in IPOs as it is not a common field of research today. 

Methodology: A quantitative study with a deductive approach is combined to create a regression analysis of branding and finance values. The data is collected through secondary sources and with content analysis in an event study. A test-retest is conducted to ensure inter-observation consistency.

Empirical findings: The results show that a house-of-brands architecture and hybrid architecture have a strong negative effect on returns. The opposite goes for business-to-consumer brand portfolio segmentation and having 6-15 brands in a brand portfolio, which show positive effects on return.

Conclusion: We advise investors with a short investment time frame to acquire shares in IPOs of firms that have business-to-consumer brand portfolio segmentation and 5-16 brands in a brand portfolio. Furthermore, we advise investors to not invest in firms with either a house-of-brands architecture or a hybrid brand architecture.},
  author       = {Friberg, Ebba and Ekman, Felix and Sjöstrand, Hanna},
  keyword      = {Initial public offering,Brand portfolio strategy,Product and brand focus,Brand architecture,Underpricing},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does it really matter? - A look at how branding strategies affect the return after an IPO},
  year         = {2016},
}