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Regulatory Exposure Of Deceptive Marketing And Its Impact On Firm Value, Martha Myslinski Tipton, Sundar G. Bharadwaj, Diana C. Robertson

Research Collection Lee Kong Chian School Of Business

Research linking marketing to financial performance has predominantly focused on how marketing assets and actions add value. The authors argue that it is equally important to understand how marketing decisions can reduce firm value. Prior research has indicated that negative events vary greatly in their indirect costs to the firm. On the basis of established theory and in-depth interviews with practitioners, the authors identify a set of factors that can explain the heterogeneity in the magnitude of indirect costs associated with negative marketing-related events. Specifically, they address how the regulatory exposure of deceptive marketing, which carries no direct cost to …