  Co-branding has become a widely used marketing strategy, yet little attention
has been paid to its impact on a firm's stock value. Prior literature has shown
that using a co-branding strategy properly helps firms leverage the brand value
and equity. We discussed the theoretical foundations and main accomplishments
of prior studies. We developed a conceptual framework and hypothesis to close
the existing research gap in the topic of interest. We argued that co-branding
event announcement generates positive abnormal returns in the stock market.
Furthermore, we investigated the moderating impact of co-branding structure on
the relation between co-branding event announcements and abnormal returns. We
claimed that higher co-branding integration, greater co-branding exclusivity,
and longer co-branding duration generate a greater positive abnormal return for
the partnering firms.
