Does Disclosure of Advertising Spending Help Investors and Analysts?

Moon, Sungkyun; Tuli, Kapil R.; Mukherjee, Anirban

doi:10.1177/00222429221123013

Cited by 7 publications

(1 citation statement)

References 117 publications

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“…Specifically, the higher the uncertainty about a firm, the more investors charge for the allocated capital (i.e., the higher the expected return) to compensate for the associated risk. Investor uncertainty is already created if a firm does not specifically report its marketing investments (Moon, Tuli, and Mukherjee 2023). Then, even if a firm reports its marketing investments, investors are not necessarily marketing experts, creating more uncertainty around the effect of the investments on the firm's future cash flows (Srinivasan and Hanssens 2009).…”

Section: Impact On Cost Of Capitalmentioning

confidence: 99%

Consequences of Marketing Asset Accountability—A Natural Experiment

Guenther,

Lukas

et al. 2024

Journal of Marketing

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Marketing scholars have extensively studied marketing’s effect on firm value and developed metrics and dashboards to help establish marketing accountability. However, empirical evidence of marketing accountability’s specific outcomes is scarce and mainly derived from surveys. It also lacks consideration of outcomes beyond the marketing function’s standing in the firm, thus overlooking possible downsides and outcomes with regard to external stakeholders such as investors. Using a natural experiment — Australia’s change from a non-restrictive to a restrictive accounting regime — this study investigates how accountability for the financial value of marketing assets (marketing asset accountability) affects a firm’s marketing management focus on short-term vis-à-vis long-term marketing efficiency, its cost of capital, and the degree to which its stock price reflects actual future performance (i.e., stock price informativeness). The results show that marketing asset accountability improves long-term marketing efficiency, reduces cost of equity, and improves stock price informativeness, but does not consistently affect short-term marketing efficiency and cost of debt. Moreover, although marketing-intensive firms are commonly assumed to benefit most from marketing asset accountability, this is not the case. These results have implications for researchers, managers, and public policy decision-makers.

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Section: Impact On Cost Of Capitalmentioning

confidence: 99%

Consequences of Marketing Asset Accountability—A Natural Experiment

Guenther,

Lukas

et al. 2024

Journal of Marketing

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Navigating Geopolitical Turmoil: Corporate Responses to the War in Ukraine and Its Impact on Consumer Mindset

Ganesan,

Mallapragada

2024

Journal of Public Policy & Marketing

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Following Russia’s 2022 invasion of Ukraine, many companies withdrew from or altered their Russian operations. This research explores the impact of such corporate actions on three important consumer mindset metrics: net brand buzz, consideration set inclusion, and purchase intent. We also examine the moderating role of the firm’s environmental, social, and governance (ESG) reputation, the type of business (B2B vs. B2C), and the focal firm’s decisions relative to peers. We test our propositions using a unique dataset that combines a firm’s decision related to its Russian operations, consumer mindset metrics, and ESG performance after controlling for firm-level factors. Our findings indicate that decisions such as withdrawal from or suspension of activities in Russia are positively related to consumer mindset metrics. Moreover, this effect is accentuated for firms with a strong prior ESG reputation such that they experience a greater level of net brand buzz, brand consideration set inclusion, and purchase intent following the decision compared to the period before such decisions. Our study contributes to understanding the relationship between such corporate actions and consumer mindset metrics in a novel geopolitical context, providing valuable insights for managerial decision-making and public policy.

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