Do market share and demand uncertainty influence the relation between advertising expenditures and shareholder value?
Author
Suggested Citation
DOI: 10.1016/j.jbusres.2020.04.028
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Milgrom, Paul & Roberts, John, 1986.
"Price and Advertising Signals of Product Quality,"
Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
- Paul R. Milgrom & John Roberts, 1984. "Price and Advertising Signals of Product Quality," Cowles Foundation Discussion Papers 709, Cowles Foundation for Research in Economics, Yale University.
- Chevalier, Judith A & Scharfstein, David S, 1996.
"Capital-Market Imperfections and Countercyclical Markups: Theory and Evidence,"
American Economic Review, American Economic Association, vol. 86(4), pages 703-725, September.
- Judith A. Chevalier & David S. Scharfstein, 1994. "Capital Market Imperfections and Countercyclical Markups: Theory and Evidence," NBER Working Papers 4614, National Bureau of Economic Research, Inc.
- Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
- C. Edward Fee & Charles J. Hadlock & Joshua R. Pierce, 2009. "Investment, Financing Constraints, and Internal Capital Markets: Evidence from the Advertising Expenditures of Multinational Firms," The Review of Financial Studies, Society for Financial Studies, vol. 22(6), pages 2361-2392, June.
- Michael Faulkender & Rong Wang, 2006. "Corporate Financial Policy and the Value of Cash," Journal of Finance, American Finance Association, vol. 61(4), pages 1957-1990, August.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-754, July/Aug..
- Klemperer, Paul D, 1987. "Entry Deterrence in Markets with Consumer Switching Costs," Economic Journal, Royal Economic Society, vol. 97(388a), pages 99-117, Supplemen.
- Tuli, Kapil R. & Mukherjee, Anirban & Dekimpe, Marnik G., 2012. "On the Value Relevance of Retailer Advertising Spending and Same-store Sales Growth," Journal of Retailing, Elsevier, vol. 88(4), pages 447-461.
- Peles, Yoram, 1971. "Rates of Amortization of Advertising Expenditures," Journal of Political Economy, University of Chicago Press, vol. 79(5), pages 1032-1058, Sept.-Oct.
- Chemmanur, Thomas & Yan, An, 2009. "Product market advertising and new equity issues," Journal of Financial Economics, Elsevier, vol. 92(1), pages 40-65, April.
- Fama, Eugene F. & French, Kenneth R., 1997. "Industry costs of equity," Journal of Financial Economics, Elsevier, vol. 43(2), pages 153-193, February.
- Mitchell A. Petersen, 2009.
"Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches,"
The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
- Mitchell A. Petersen, 2005. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," NBER Working Papers 11280, National Bureau of Economic Research, Inc.
- Kevin W. Chauvin & Mark Hirschey, 1993. "Advertising, R&D Expenditures and the Market Value of the Firm," Financial Management, Financial Management Association, vol. 22(4), Winter.
- Gustavo Grullon, 2004. "Advertising, Breadth of Ownership, and Liquidity," The Review of Financial Studies, Society for Financial Studies, vol. 17(2), pages 439-461.
- Kihlstrom, Richard E & Riordan, Michael H, 1984. "Advertising as a Signal," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 427-450, June.
- Paul Klemperer, 1987. "Markets with Consumer Switching Costs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 375-394.
- Fama, Eugene F. & French, Kenneth R., 1993. "Common risk factors in the returns on stocks and bonds," Journal of Financial Economics, Elsevier, vol. 33(1), pages 3-56, February.
- GrahamJr., Roger C. & Frankenberger, Kristina D., 2000. "The Contribution of Changes in Advertising Expenditures to Earnings and Market Values," Journal of Business Research, Elsevier, vol. 50(2), pages 149-155, November.
- Buil, Isabel & de Chernatony, Leslie & Martínez, Eva, 2013. "Examining the role of advertising and sales promotions in brand equity creation," Journal of Business Research, Elsevier, vol. 66(1), pages 115-122.
- Gary Erickson & Robert Jacobson, 1992. "Gaining Comparative Advantage Through Discretionary Expenditures: The Returns to R&D and Advertising," Management Science, INFORMS, vol. 38(9), pages 1264-1279, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Al-Gamrh, Bakr & Rasul, Tareq, 2024. "Recession-proof marketing? Unraveling the impact of advertising efficiency on stock volatility," International Review of Financial Analysis, Elsevier, vol. 92(C).
- Wang, Wei & Zhang, Yue-Jun, 2022. "Does China's carbon emissions trading scheme affect the market power of high-carbon enterprises?," Energy Economics, Elsevier, vol. 108(C).
- Hoskins, Jake D. & Carson, Stephen J., 2022. "Industry conditions, market share, and the firm’s ability to derive business-line profitability from diverse technological portfolios," Journal of Business Research, Elsevier, vol. 149(C), pages 178-192.
- Cui, Xin & Ji, Xinyuan & Meng, Wei & Song, Qi, 2023. "Product market competition and corporate advertising expenditure: Evidence from a natural experiment," Research in International Business and Finance, Elsevier, vol. 64(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Kaniel, Ron & Starks, Laura T & Gallaher, Steven, 2015. "Advertising and Mutual Funds: From Families to Individual Funds," CEPR Discussion Papers 10329, C.E.P.R. Discussion Papers.
- Belleflamme,Paul & Peitz,Martin, 2015.
"Industrial Organization,"
Cambridge Books,
Cambridge University Press, number 9781107687899.
- Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107069978, September.
- Yuan Huang & Steven Wei, 2012. "Advertising intensity, investor recognition, and implied cost of capital," Review of Quantitative Finance and Accounting, Springer, vol. 38(3), pages 275-298, April.
- Lou, Dong, 2013. "Attracting investor attention through advertising," LSE Research Online Documents on Economics 54382, London School of Economics and Political Science, LSE Library.
- Matthew D. Hill & G. Wayne Kelly & Michael J. Highfield, 2010. "Net Operating Working Capital Behavior: A First Look," Financial Management, Financial Management Association International, vol. 39(2), pages 783-805, June.
- Du, Ding & Osmonbekov, Talai, 2020. "Direct effect of advertising spending on firm value: Moderating role of financial analyst coverage," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 196-212.
- Nejadmalayeri, Ali & Mathur, Ike & Singh, Manohar, 2013. "Product market advertising and corporate bonds," Journal of Corporate Finance, Elsevier, vol. 19(C), pages 78-94.
- Xuying Zhao & Hong Guo & Gangshu Cai & Subhajyoti Bandyopadhyay, 2021. "The Role of Expectation–Reality Discrepancy in Service Contracts," Production and Operations Management, Production and Operations Management Society, vol. 30(11), pages 4160-4175, November.
- Tuli, Kapil R. & Mukherjee, Anirban & Dekimpe, Marnik G., 2012. "On the Value Relevance of Retailer Advertising Spending and Same-store Sales Growth," Journal of Retailing, Elsevier, vol. 88(4), pages 447-461.
- Ding, Shujun & Jia, Chunxin & Wu, Zhenyu & Yuan, Wenlong, 2017. "Limited attention by lenders and small business debt financing: Advertising as attention grabber," International Review of Financial Analysis, Elsevier, vol. 49(C), pages 69-82.
- Thomas de Haan & Theo Offerman & Randolph Sloof, 2015.
"Money Talks? An Experimental Investigation Of Cheap Talk And Burned Money,"
International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(4), pages 1385-1426, November.
- Thomas de Haan & Theo Offerman & Randolph Sloof, 2011. "Money talks? An Experimental Investigation of Cheap Talk and Burned Money," Tinbergen Institute Discussion Papers 11-069/1, Tinbergen Institute.
- Pracejus, John W. & O'Guinn, Thomas C. & Olsen, G. Douglas, 2013. "When white space is more than “burning money”: Economic signaling meets visual commercial rhetoric," International Journal of Research in Marketing, Elsevier, vol. 30(3), pages 211-218.
- Ning Zhang, 2016. "The effects of anticipated future investments on firm value: evidence from mergers and acquisitions," Review of Accounting Studies, Springer, vol. 21(2), pages 516-558, June.
- Mark W. Nichols, 1998. "Advertising and Quality in the U.S. Market for Automobiles," Southern Economic Journal, John Wiley & Sons, vol. 64(4), pages 922-939, April.
- Moraga-Gonzalez, Jose Luis, 2000.
"Quality uncertainty and informative advertising,"
International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 615-640, May.
- Moraga González, José Luis, 1997. "Quality uncetainty and informative advertising," UC3M Working papers. Economics 6040, Universidad Carlos III de Madrid. Departamento de EconomÃa.
- José Luis Moraga-González, 1997. "Quality Uncertainty and Informative Advertising," CIE Discussion Papers 1997-19, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Lou, Dong, 2009. "Attracting investor attention through advertising," LSE Research Online Documents on Economics 29311, London School of Economics and Political Science, LSE Library.
- Guillem Roig, 2017.
"Product Compatibility as an Strategy to Hinder Entry Deterrence,"
Documentos de Trabajo
15773, Universidad del Rosario.
- Guillem Roig, 2017. "Product Compatibility as an Strategy to Hinder Entry Deterrence," Documentos de Trabajo 15774, Universidad del Rosario.
- Chemmanur, Thomas & Yan, An, 2009. "Product market advertising and new equity issues," Journal of Financial Economics, Elsevier, vol. 92(1), pages 40-65, April.
- Simon P. Anderson & Régis Renault, 2006.
"Advertising Content,"
American Economic Review, American Economic Association, vol. 96(1), pages 93-113, March.
- Simon P. Anderson & Régis Renault, 2002. "Advertising Content," Virginia Economics Online Papers 362, University of Virginia, Department of Economics.
- Anderson, Simon & Renault, Régis, 2005. "Advertising Content," CEPR Discussion Papers 5064, C.E.P.R. Discussion Papers.
- repec:lan:wpaper:1176 is not listed on IDEAS
- Zakaria Babutsidze, 2011. "Returns to product promotion when consumers are learning how to consume," Journal of Evolutionary Economics, Springer, vol. 21(5), pages 783-801, December.
More about this item
Keywords
Advertising expenditures; Market value; Shareholder value; Market share; Demand uncertainty;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:115:y:2020:i:c:p:61-69. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.