The Effect of Co-branding Strategy Announcement on financial Analysts’ Earnings Forecast Revisions

• Main Authors: Yu-JuHuang, 黃郁茹
• Other Authors: Min-Hsien Chiang
• Format: Others
• Language: en_US
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/04543603537288360354

碩士 === 國立成功大學 === 國際企業研究所 === 103 === Co-branding strategy plays an important role in company’s marketing activities. Although there are many marketing researches indicate that the influence of co-branding is positive for company, there has not been any financial empirical study to support the importance of co-branding strategy. Thus, in this study, we try to understand how co-branding will determine company’s wealth effect and examines the revisions of financial analysts’ earnings forecast when companies announce the co-branding strategy, discussing in short-term and long-term respectively. In this research, we use co-branding announcements from LexisNexis Database as sample during 1995 to 2004. We examine analysts’ forecast of current-year earnings and five-year earnings growth around announcement of co-branding strategy. The result shows no relation between analysts’ forecast revisions in current-year earnings with co-branding announcement. But we find that there is a significant relation between analysts’ forecast revisions in five-year earnings growth rate and co-branding announcement.