Assistant Professor, PG. Dept of Commerce and Management, D A V College for boys, Katra Sher Singh, Amritsar-143001
Online published on 25 March, 2015.
Branding as a source of value is based on the creation and valorization of brand equity. Brand-building is connected to the surpluses generated by the labor of user-consumers as well as the designers and producers of branded products and services; the realization of surplus through control of revenues derived from sales of these products and services and the appropriation of surpluses, including the conversion of brand equity into brand value after deduction of costs. Branding is very essential in service sector because service industry demands differentiation which can be possible only through branding. Investment in branding is related to the financialization of brands as intangibles that make a growing contribution to market capitalization. Brand value put a significant impact on market capitalization. The current study examined the relationship between brand value and market performance of banks by using the market capitalization of global bank brands to test whether strong brands outperform the market The data of Brand value and market capitalization has been collected from the report of Brand Finance Banking 500 published in 2013. Correlation and Regression analysis was applied to analyze the relationship between branding and market capitalization. Correlation and Regression analysis was applied to analyze the relationship between branding and market capitalization. It is concluded that Brand value has significant impact on market capitalization of banks. Market Capitalization is indispensable in banking business because it is an effective measure to transmit information to the investors about the stock volatility
