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Full-Text Articles in Business
Does Disclosure Of Advertising Spending Help Investors And Analysts?, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Does Disclosure Of Advertising Spending Help Investors And Analysts?, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Research Collection Lee Kong Chian School Of Business
Publicly listed firms have the discretion to disclose (or not) advertising spending in their annual (10-K) reports. The disclosure of advertising spending can provide valuable information because advertising is a leading indicator of future performance. However, estimates of advertising spending are available from data providers, arguably mitigating the need for its formal disclosure. This study argues that firms’ disclosure of advertising spending provides more complete and public information and therefore lowers investor uncertainty about future firm performance (idiosyncratic risk). Empirical analyses show this effect is largely driven by the negative effect of disclosure of advertising spending on analyst uncertainty. Consistent …
Investors' Evaluations Of Price-Increase Preannouncements, Leon Gim Lim, Kapil R. Tuli, Marnik G. Dekimpe
Investors' Evaluations Of Price-Increase Preannouncements, Leon Gim Lim, Kapil R. Tuli, Marnik G. Dekimpe
Research Collection Lee Kong Chian School Of Business
Several firms preannounce their price increases with the expectation that such announcements will be evaluated favorably by investors. However, little is known about the actual effect they have on shareholder value. Accordingly, the authors present the first systematic empirical examination of investors' evaluations of 274 price-increase preannouncements (PIPs). Results show that whereas the average increase in abnormal returns following a PIP is 0.51%, almost 41% of the PIPs result in negative abnormal returns. To explore this heterogeneity, the authors propose a conceptual framework that focuses on three key pieces of information that investors can use when evaluating a PIP: information …
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
The Impact Of Advertising Share Of Voice On The Idiosyncratic Risk Of The Firm, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Research Collection Lee Kong Chian School Of Business
Integrating literature in marketing, finance and accounting, this study examines the impact ofa firms’ advertising share of voice (ASOV) on investors’ uncertainty about its future financialperformance, i.e., firms’ idiosyncratic risk. Drawing on signaling theory, authors propose that ASOV serves as a signal for investors such that higher ASOV reduces idiosyncratic risk. Consistent with this argument, analysis of 2,777 publicly listed firms over a two-decade period (1995-2014) shows that ASOV has a significant negative effect on idiosyncratic risk.In addition, consistent with the argument that ASOV is a more credible signal when firmshave higher cash flows; authors find that the negative impact …
Does Brand Licensing Increase A Licensor's Shareholder Value?, Adina B. Robinson, Kapil R. Tuli, Ajay K. Kohli
Does Brand Licensing Increase A Licensor's Shareholder Value?, Adina B. Robinson, Kapil R. Tuli, Ajay K. Kohli
Research Collection Lee Kong Chian School Of Business
This study examines 171 brand licensing announcements and subsequent changes in the licensor firms' shareholder values using the event study method. We find that although brand licensing announcements lead to positive abnormal returns on average, nearly 44% of the announcements in our sample are followed by negative abnormal returns. We argue that investors react more favorably to a brand licensing announcement when they believe (i) the brand has greater ability to stimulate licensee product sales (and thus generate higher royalties for the licensor) and (ii) the licensor firm has greater ability to limit licensee opportunism (and thus limit brand dilution …
Regulatory Exposure Of Deceptive Marketing And Its Impact On Firm Value, Martha Myslinski Tipton, Sundar G. Bharadwaj, Diana C. Robertson
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 …
Marketing Strategy And Wall Street: Nailing Down Marketing's Impact, Dominique M. Hanssens, Roland T. Rust, Rajendra Kumar Srivastava
Marketing Strategy And Wall Street: Nailing Down Marketing's Impact, Dominique M. Hanssens, Roland T. Rust, Rajendra Kumar Srivastava
Research Collection Lee Kong Chian School Of Business
Stock prices are based in large part on corporate financial statements, augmented by analysis by stock analysts. The ultimate goal of any marketing expenditure should be to increase the value of the firm, but the road from marketing expenditure to stock price is usually circuitous. This is because marketing’s path to financial impact is through revenues, and the road to revenues runs through the customer.
Market-Based Assets And Shareholder Value: A Framework For Analysis, Rajendra Kumar Srivastava, Tasadduq A. Shervani, Liam Fahey
Market-Based Assets And Shareholder Value: A Framework For Analysis, Rajendra Kumar Srivastava, Tasadduq A. Shervani, Liam Fahey
Research Collection Lee Kong Chian School Of Business
The authors develop a conceptual framework of the marketing-finance interface and discuss its implications for the theory and practice of marketing. The framework proposes that marketing is concerned with the task of developing and managing market-based assets, or assets that arise from the commingling of the firm with entities in its external environment. Examples of market-based assets include customer relationships, channel relationships, and partner relationships. Market-based assets, in turn, increase shareholder value by accelerating and enhancing cash flows, lowering the volatility and vulnerability of cash flows, and increasing the residual value of cash flows. ABSTRACT FROM AUTHOR Copyright of Journal …