Brands matter: An empirical demonstration of the creation of shareholder value through branding

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. Barclays Global Investors Thomas J. Madden is a professor of marketing and director of the Professional MBA/Executive International MBA programs at the Moore School of Business, University of South Carolina. His research focuses on the measurement of brand meaning, marketing metrics, and value-based marketing strategies. His research has appeared in theJournal of Marketing Research, theJournal of Marketing, and theJournal of Consumer Behavior. Frank Fehle (frank.fehle@barclaysglobal.com) is the head of Europe Equity Research at Barclays Global Investors in London, United Kingdom. Previously, he was an assistant professor of finance at the University of South Carolina. His research focuses on empirical asset pricing, market microstructure, risk management, and derivatives. His work has appeared in theJournal of Financial Economics, theJournal of Futures Markets, theJournal of Economics and Business, theReview of Quantitative Finance and Accounting, among other journals and conference proceedings. Susan Fournier is an associate professor of marketing at Boston University. Her research focuses on branding and brand relationship marketing. Current projects explore person-brands, resonance as a moderator of the brand meaning → brand strength connection, the types of relationships consumers form with brands, and dynamic processes of relationship development and evolution. She served for 9 years on the Harvard Business School faculty and 2 years as a visitor at Dartmouth College. She consults with a range of companies to inform her teaching, case development, and research.     

Pioneer brand advantage and consumer behavior: A conceptual framework and propositional inventory

What are the behavioral origins of pioneer brand advantage? This article provides an integrative conceptual framework and propositional inventory to help more fully understand this multifaceted phenomenon. It is proposed that there are three sources of entry-order information that work through various psychological processes and affect multiple decision process variables. The conceptual framework translates into eight testable propositions. New exploratory evidence is presented. Managerial implications are discussed.     

Performance assessment of ensemble learning systems in financial data classification

Financial data classification plays an important role in investment and banking industry with the purpose to control default risk, improve cash and select the best customers. Ensemble learning and classification systems are becoming gradually more applied to classify financial data where outputs from different classification systems are combined. The objective of this research is to assess the relative performance of existing state‐of‐the‐art ensemble learning and classification systems with applications to corporate bankruptcy prediction and credit scoring. The considered ensemble systems include AdaBoost, LogitBoost, RUSBoost, subspace, and bagging ensemble system. The experimental results from three datasets: one is composed of quantitative attributes, one encompasses qualitative data, and another one combines both quantitative and qualitative attributes. By using ten‐fold cross‐validation method, the experimental results show that AdaBoost is effective in terms of low classification error, limited complexity, and short time processing of the data. In addition, the experimental results show that ensemble classification systems outperform existing models that were recently validated on the same databases. Therefore, ensemble classification system can be employed to increase the reliability and consistency of financial data classification task.     

Linking material and energy flow analyses and social theory

The paper explores the potential of Habermas' theory of communicative action to alter the social reflexivity of material and energy flow analysis. With his social macro theory Habermas has provided an alternative, critical justification for social theory that can be distinguished from economic libertarianism and from political liberalism. Implicitly, most flow approaches draw from these theoretical traditions rather than from discourse theory. There are several types of material and energy flow analyses. While these concepts basically share a system theoretical view, they lack a specific interdisciplinary perspective that ties the fundamental insight of flows to disciplinary scientific development. Instead of simply expanding micro-models to the social macro-dimension social theory suggests infusing the very notion of flows to the progress of disciplines. With regard to the functional integration of society, material and energy flow analyses can rely on the paradigm of ecological economics and at the same time progress the debate between strong and weak sustainability within the paradigm. However, placing economics at the centre of their functional analyses may still ignore the broader social integration of society, depending on their pre-analytic outline of research and the methods used.     

An Epistemic Analysis of (Un)Sustainable Business

Michel Foucault famously analysed orders of knowledge, ‘epistemes’, in past European ages. In this study, his analytical method is fruitfully applied to gaining a better understanding of business sustainability within and beyond the Modern episteme. After an introduction to the contextual background for the study, this article provides (i) a justification for the use of a Foucauldian epistemic analytical method, (ii) an outline of the method, (iii) an application of the method to identify four sets of questions (morality, specialisation, anthropologization and mathematicization) that are both direct derivatives of the Modern episteme and problematic for sustainable development, and finally (iv) an application of the method to consider evidence for the emergence of a new episteme. Conclusions are also provided.