This dissertation investigates how strategic branding can be measured among listed companies in a particular industry and whether long term investments in branding have any significant and measurable economic impact on shareholders. The work explores initially the hypothesis as to whether there could be a correlation between branding and financial performance, by applying a range of Ordinary Least Square (OLS) multi-variable regression analyses and is based on a total research test sample with more than 13,500 listed corporations.

The overall hypothesis throughout the entire research project is that branding should be considered as a financial investment and as a corporate asset; its economic impact should be assessed from a shareholder perspective.

Furthermore it also looks at the reasons why do shareholders of listed financial corporation's not receive a systematic computation or return on investment calculation on their potentially largest asset, their brand
At present, there is little empirical evidence of a link between company brand equity and the financial return achieved by the company.

Consequently and based on this research work, this dissertation introduces the concept of brand thrust which reconciles two concepts; (I) strategic branding and (II) shareholder value. This methodology combined with the research findings presented is used as platform for a discussion about how branding investments can be assessed and measured during different piecewise intervals. The conclusion is that the relationship between branding and financial performance can, in some industries, be described as a simplified W- function.

Furthermore, this investigation has also confirmed findings from previous studies (Aaker, Kerin, Buzell and Gale),that strategic branding, which is managed dynamically and has an economic equilibrium, will ultimately provide shareholders of a particular corporation with an enhanced financial performance. Companies taking such a line will typically have enhanced their return by 3 - 7 %,- which is significant. Hence, shareholders should insist on systematic performance feedback from the corporation on key financial ratios, including return on their branding investment.

Arranged by:
Department of International Economics and Management
Copenhagen Business School.

Supervisors:
Professor Per Jenster - Professor Thomas Ritter, CBS

Assessment Committee:
Professor Caspar Rose (chair)
Department of International Economics and Management
Copenhagen Business School

Professor Ole Ø. Madsen
School of Economics and Management
Aarhus University

Professor David Smith
National University
San Diego, US.