Reinventing a brand’s identity: effect of name and logo announcements on the stock price of Indian banks

Pushpanjali Kaul () and Sangeeta Arora ()
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Pushpanjali Kaul: University School of Financial Studies, Guru Nanak Dev University
Sangeeta Arora: University School of Financial Studies, Guru Nanak Dev University

Journal of Brand Management, 2022, vol. 29, issue 3, No 2, 258-270

Abstract: Abstract This research contributes to marketing literature by examining the signaling effect of two fundamental dimensions of brand identity: name and logo change. The purpose of this paper is to examine short and long-run market reaction to identity change through rebranding announcements of Indian banks from 2000 to 2019. The study uses event study methodology to estimate cumulative abnormal returns and market-adjusted buy-and-hold abnormal returns (BHARs) of rebranded banks and statistical significance is tested with both parametric and nonparametric test-statistics. The findings on an average suggest; (1) market reacts positively over the initial period around the announcement dates as investors realized positive and significant cumulative abnormal returns in short-run. (2) This positive short-term effects seem to be permanent as investors could earn positive and significant BHAR for holding their investments up to 12 months or 36 months interval following the month of announcement and with this banks significantly outperforms the NIFTY-BANK index. The study offers valuable insights to individual and institutional investors and also provides practical implications for bankers and for brand strategists. This significant and positive market reaction evidence can also serve as foundation for maximizing the financial value of such kind of strategic marketing actions.

Keywords: Corporate re-branding; Abnormal return; Brand identity change; Name and logo change; Event study; Market value (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1057/s41262-021-00266-2

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