Exploring the impact of strategic emphasis on advertising versus R&amp;D during stock market downturns and upturns

Sung, Jin Kyung; Park, Jimi; Yoo, Shijin

doi:10.1016/j.jbusres.2018.09.018

Cited by 12 publications

(14 citation statements)

References 51 publications

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“…In other words, large firms generally have more resources to allocate than small firms. Studies on the value-relevance of R&D and advertising expenditures are one of the hottest issues in theory and practice [4][5][6][7][8][9].…”

Section: Introductionmentioning

confidence: 99%

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

Feng

Chen

2019

Sustainability

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Advertising and research and development (R&D) are two engines for firms to obtain competitiveness and improve profits. This study develops a system of equations to investigate the overall relationships among R&D, advertising and financial performance across firm sizes. Data from Korean listed firms have been used during 2012–2016. First, our results show that R&D and advertising are complementary in South Korea. Second, for large firms, advertising is positively and significantly associated with financial performance, and the R&D expenditure has no significant influence. Finally, R&D and advertising expenditures have a negative impact on the financial performance of small firms. An additional analysis is conducted to examine the duration of R&D and advertising. Our results from Korean listed firms contain important implications for academia as well as practitioners.

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Section: Introductionmentioning

confidence: 99%

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

Feng

Chen

2019

Sustainability

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“…Finally, factors reported in previous studies to influence brand equity and corporate performance were added as control variables. Specifically, asset size (Sung et al , 2019), company size (Fang et al , 2011), growth (Flammer, 2015), leverage (Torres et al , 2012) and industry (Srinivasan et al , 2011) were controlled. See Table 1 for definitions.…”

Section: Research Methods and Resultsmentioning

confidence: 99%

Customer engagement on social media, brand equity and financial performance: a comparison of the US and Korea

Lee

Park

2021

APJML

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PurposeThe purpose of this paper is to analyze the relationship between customer engagement in social media (CESM), brand equity and corporate performance and investigated whether these relationships differed according to cultural factors in the United States and South Korea.Design/methodology/approachWe collected customer engagement on social media data on Facebook and brand equity data from Interbrand for listed companies in the United States and Korea. A total of 405 data sets were analyzed by partial least squares structural equation modeling (PLS-SEM).FindingsResults revealed that CESM did not affect financial performance through a direct path but was found to have a positive indirect path via the mediation of brand equity. In addition, this relationship was found to differ between the United States and South Korea.Originality/valueThis study contributed to the literature on social media and international management by verifying the relationship between CESM, brand equity and financial performance, and by presenting exploratory research results to ascertain if these relationships differ according to the cultural dimension of the country.

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“…Also, R&D intensity was significantly positively associated with higher stock return volatility. Sung et al (2019) The authors attempted to understand the level of strategic emphasis to be given on value appropriation over value creation during different market trends (upturn and downturn) by estimating stock returns of 287 firms listed in NYSE.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Demonetization on Advertising, Research & Development and Human Resource Intensities and its Impact on Firm’s Performance

Bhattacharyya

Nemana

2021

Vision: The Journal of Business Perspective

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Investing in advertising, research and development (R&D) and human resource management and development (HRMD) enabled firms to achieve competitive advantage and improve profitability. Indian economy witnessed the event of ‘Demonetization’ in November 2016 that created short term cash shortage. The study aimed at understanding the relationship of advertising, R&D and HRMD intensities on firm performance (proxied with return on assets). The effects of demonetization on these variables were explored. Financial data of listed Indian firms, over the years 2014–2019 was collected from CMIE Prowess database for the analysis using fixed effects panel-data regression. Results indicated significant positive relationship between R&D and advertising intensity with firm’s performance pre-demonetization, while reduced effect post-demonetization. HRMD intensity had a negative relationship pre as well as post-demonetization on firm’s performance. The results provided insights for managers and decision-makers on the impact of cash resource allocation on R&D, HRMD and advertising expenditures in creating firm value.

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Exploring the impact of strategic emphasis on advertising versus R&D during stock market downturns and upturns

Cited by 12 publications

References 51 publications

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

R&D, Advertising and Firms’ Financial Performance in South Korea: Does Firm Size Matter?

Customer engagement on social media, brand equity and financial performance: a comparison of the US and Korea

Effect of Demonetization on Advertising, Research & Development and Human Resource Intensities and its Impact on Firm’s Performance

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