Does it Pay to Rebrand? The Impact of Corporate Rebranding Strategies on Financial Performance of Joint-stock Companies

Abstract:

The aim of this paper is to examine the impact of corporate rebranding strategies on companies’ financial performance.

The sample comprised of 121 joint-stock companies listed on WSE Main Market and New Connect in Poland. The multiple regression was conducted first for strategies and performance only, and then including the interaction effects of companies’ industry, number of employees and capital structure. Relative growth of financial indices was calculated with chain base method.

The study partly confirmed positive association between corporate brand name change with enterprises’ financial performance and its moderation by the enterprises’ industry and capital structure. The moderation of this relationship was partly confirmed by both companies’ industry and capital structure, yet was not confirmed by the companies’ size. It has been also proved that such rebranding motives as mergers and strategic factors were also positively associated with companies’ financial performance.