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Management article
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Reference no. F1109B
Published by: Harvard Business Publishing
Published in: "Harvard Business Review - Forethought", 2011

Abstract

Having studied the relationship between how newly merged companies brand themselves and their subsequent stock performance, the authors find that a ‘fusion’ branding strategy-one that combines elements of the two companies' names and logos-leads to superior financial returns three years out. The reason, they believe, is that this approach sends reassuring signals to employees, customers, and ultimately investors.

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Abstract

Having studied the relationship between how newly merged companies brand themselves and their subsequent stock performance, the authors find that a ‘fusion’ branding strategy-one that combines elements of the two companies' names and logos-leads to superior financial returns three years out. The reason, they believe, is that this approach sends reassuring signals to employees, customers, and ultimately investors.

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