Match!

Advertising, Earnings Prediction and Market Value: An Analysis of Persistent UK Advertisers

Published on Aug 6, 2019in British Journal of Management
· DOI :10.1111/1467-8551.12378
Syed Zulfiqar Ali Shah12
Estimated H-index: 12
(Warw.: University of Warwick),
Saeed Akbar13
Estimated H-index: 13
(University of Bradford)
+ 1 AuthorsAndrew W. Stark20
Estimated H-index: 20
(University of Manchester)
Abstract
  • References (84)
  • Citations (1)
📖 Papers frequently viewed together
61 Citations
31 Citations
105 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References84
Newest
#1Thomas J. Chemmanur (BC: Boston College)H-Index: 32
#2An Yan (Fordham University)H-Index: 8
This paper studies the effect of advertising on stock returns both in the short run and in the long run. We find that a greater amount of advertising is associated with a larger stock return in the advertising year but a smaller stock return in the year subsequent to the advertising year, even after we control for other price predictors, such as size, book-to-market, and momentum. We conjecture that this advertising effect on stock returns is due to the effect of advertising on investor attentio...
35 CitationsSource
#1Baruch Lev (NYU: New York University)H-Index: 53
There is a wide-spread and growing dissatisfaction with the relevance and usefulness of financial report information, particularly among investors and corporate executives. The dissatisfaction is corroborated by extensive research which consistently documents a growing gap between capital market indicators and financial information, more so for reported earnings. The reported earnings of most firms no longer reflect enterprise performance. I trace the deterioration of the usefulness of financial...
8 CitationsSource
#1Imran S. Currim (UC: University of California)H-Index: 24
#2Jooseop Lim (Concordia University)H-Index: 6
Last. Yu Zhang (China Europe International Business School)H-Index: 4
view all 3 authors...
Despite the clearly visible effects of analysts’ pressures on C-level executives in the popular press, there is limited evidence on their effects on marketing spending decisions. This study asks two questions. First, how do analysts’ pressures affect firms’ short-term marketing spending decisions? Based on a sample of 2706 firms during 1987–2009 compiled from Institutional Brokers Earning System, COMPUSTAT, and CRSP databases we find that firms cut marketing spending. Second, more importantly, w...
2 CitationsSource
#1Judy Ma (CSUEB: California State University, East Bay)H-Index: 2
#2Brian Du (CSUEB: California State University, East Bay)H-Index: 3
ABSTRACT As companies continue to shift advertising expenditures toward digital-media channels, the benefits of digital advertising (adaptability of content, more efficient consumer targeting, and higher reach per dollar) must be weighed against the opportunity cost (forgone synergy between digital and traditional advertising). Using a hand-matched proprietary dataset of 1,538 companies from 2001 to 2012, this study documents that digital share—the ratio of digital advertising to traditional adv...
1 CitationsSource
#1Lisette de VriesH-Index: 4
#2Sonja Gensler (WWU: University of Münster)H-Index: 14
Last. Peter S. H. LeeflangH-Index: 38
view all 3 authors...
AbstractThis study examines the relative effectiveness of traditional advertising, impressions generated through firm-to-consumer (F2C) messages on Facebook, and the volume and valence of consumer-to-consumer (C2C) messages on Twitter and web forums for brand-building and customer acquisition efforts. The authors apply vector autoregressive modeling to a unique data set from a European telecom firm. This modeling approach allows them to consider the interrelations among traditional advertising, ...
22 CitationsSource
#1Koen Tackx (Katholieke Universiteit Leuven)H-Index: 3
#2Sandra Rothenberger (ULB: Université libre de Bruxelles)H-Index: 4
Last. Paul Verdin (ULB: Université libre de Bruxelles)H-Index: 8
view all 3 authors...
Does advertising lead to higher profits? This question has occupied both academic researchers and company executives for many decades. Arguments have gone in both directions, and evidence is mixed at best. Re-examining the question from a value creation and value capturing perspective as introduced in the strategic management and marketing literature, this article attempts to re-interpret and reconcile the different views and empirically validate the resulting hypotheses. Using a database of the...
2 CitationsSource
#1Dominique M. Hanssens (UCLA: University of California, Los Angeles)H-Index: 38
#2Koen Pauwels (Özyeğin University)H-Index: 33
AbstractMarketing departments are under increased pressure to demonstrate their economic value to the firm. This challenge is exacerbated by the fact that marketing uses attitudinal (e.g., brand awareness), behavioral (e.g., brand loyalty), and financial (e.g., sales revenue) performance metrics, which do not correlate highly with each other. Thus, one metric could view marketing initiatives as successful, whereas another could interpret them as a waste of resources. The resulting ambiguity has ...
30 CitationsSource
#1Rajeev Batra (UM: University of Michigan)H-Index: 31
#2Kevin Lane Keller (Dartmouth College)H-Index: 51
AbstractWith the challenges presented by new media, shifting media patterns, and divided consumer attention, the optimal integration of marketing communications takes on increasing importance. Drawing on a review of relevant academic research and guided by managerial priorities, the authors offer insights and advice as to how traditional and new media such as search, display, mobile, TV, and social media interact to affect consumer decision making. With an enhanced understanding of the consumer ...
73 CitationsSource
#1Leigh McAlister (University of Texas at Austin)H-Index: 27
#2Raji Srinivasan (University of Texas at Austin)H-Index: 10
Last. Albert A. CannellaH-Index: 46
view all 4 authors...
AbstractAdvertising’s influence on firm sales and firm value has drawn early attention from economists and accountants and more recent attention from marketers. Most studies that have investigated a link between advertising and sales have found such a link. However, studies that have investigated a link between advertising and firm value have only sometimes found that link. Meta-analysis has failed to determine moderators that govern the link between advertising and firm value. In this article, ...
31 CitationsSource
#1Kissan Joseph (KU: University of Kansas)H-Index: 11
#2M. Babajide Wintoki (KU: University of Kansas)H-Index: 13
Extant research has documented various sources of informational advantages enjoyed by company insiders including firm size, analyst following, dividend payout policy, book-to-market ratio, and the presence or absence of R&D investments. Surprisingly, despite this large body of work, virtually no research has investigated the contribution of advertising investments to information asymmetry. This omission is particularly glaring since: (a) advertising investments constitute a significant fraction ...
12 CitationsSource
Cited By1
Newest
#1Eilnaz Kashefi-Pour (University of Birmingham)H-Index: 1
#2Shima Amini (University of Leeds)H-Index: 4
Last. Darren Duxbury (University of Newcastle)H-Index: 13
view all 4 authors...
We investigate the influence of national culture on corporate investment–cash flow sensitivity. We conjecture that national culture shapes managerial perceptions of information asymmetry and agency problems, thus impacting the investment–cash flow relationship. We document empirical evidence in support of our claim. By linking the investment–cash flow sensitivity to cultural differences, our findings show that, while collectivism has an attenuating influence, uncertainty avoidance, power distanc...
Source