Market-Based Assets and Shareholder Value: A Framework for Analysis

Srivastava, Rajendra K.; Shervani, Tasadduq A.; Fahey, Liam

doi:10.2307/1251799

Cited by 1,303 publications

(1,152 citation statements)

References 66 publications

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“…Many authors have underscored the importance of research that broadens our understanding of the marketing -finance interface (e.g., Day and Fahey 1988;Srivastava et al 1998). Our research extends this literature by addressing the linkage between past changes in share value and changes in marketing strategies.…”

Section: Resultsmentioning

confidence: 73%

Using Capital Markets as Market Intelligence: Evidence from the Pharmaceutical Industry

2005

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Financial theory posits that capital markets convey through stock prices their expectation of the firm's future performance. We use concepts from Principal-Agent Theory and Prospect Theory to provide a theoretical explanation for the role stock price variation plays in managerial decision-making. We then empirically investigate what specific decisions managers undertake in response to stock price variation.We perform our empirical analyses in the context of the pharmaceutical industry. We find that drug firms whose stock under-performed the industry react differently than drug firms with high performing stocks.Specifically, laggards tend to implement more changes to their current product portfolio and distribution than high performing firms. And, the more laggards under-perform, the more they implement acquisitions aimed to produce immediate improvement in the firm's product portfolio. In contrast, drug firms whose stocks out-perform the industry tend to make fewer changes to their current portfolio and distribution.Instead, they focus more on long-term R&D and marketing of existing products. We interpret these findings in light of industry key success factors.Wyeth "has many issues to resolve before it can realize… bright future, Essner [Wyeth's Executive VP] admits. He lists the following: remaining an independent company, settling the diet-drug litigation, attracting good people, and maintaining stock performance at the top." (Pharmaceutical Executive 2000, p.68).

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Section: Resultsmentioning

confidence: 73%

Using Capital Markets as Market Intelligence: Evidence from the Pharmaceutical Industry

2005

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“…This is partly driven by internal criteria concerning financial strategies of prevailing business models, and partly by the external drivers from investment markets that help shape prevailing business models. Marketing outcomes are therefore measured in terms of profitable contribution to shareholder value (Srivastava et al, 1998).…”

Section: Literature Review In Management and For Project Businessesmentioning

confidence: 99%

Differences in decision-making criteria towards the return on marketing investment: A project business perspective

Smyth

Lecoeuvre

2015

International Journal of Project Management

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Assessing the value of marketing to a business remains a thorny issue in theory and practice. Decision-making at the finance-marketing interface is under-researched, particularly for project businesses. Confronted by demands of accountability concerning the allocation of resources to meet competitive pressures, the paper examines the quality and extent of dialogue in investment decision-making. The return on investment (ROI) and marketing-specific investment (ROMI) are important factors at the marketing-finance interface. ROMI/ROI is examined from quantitative and qualitative viewpoints. The empirical evidence shows that short-term financial criteria dominate and are misaligned to long-term performance of project businesses and business units. Marketing investment in relation to project markets poses a particularly challenging environment. Client lifetime value and programme data sets for ROMI coupled with qualitative decision-making offer ways forward with constructive dialogue at the finance-marketing interface. The paper concludes with detailed recommendations for research and practice.

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“…For example, intangible assets complement tangible assets such as plant and equipment or market based assets such as customer/brand and channel relationships (Srivastava, Shervani, & Fahey, 1998). However, organization resources are influenced by a variety of actions taken by management both in the rate of growth of the organization and in the direction of growth.…”

Section: Key Management Team (Kmt) Ongoing Valuementioning

confidence: 99%

Supply-chain corporate venturing through acquisition: Key management team retention

Kiessling

Harvey

Moeller

2012

Journal of World Business

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Acquisitions are often used as a way to engage in corporate venturing. The value of these ventures tends to reside in the knowledge and capabilities of the key management team members who have and maintain key inter-organizational relationships. Because their knowledge and/or relationships may be tacit and therefore difficult to transfer, retaining the key managers in the acquired organization is often a critical issue for the human resource management of the acquiring organization. They are also frequently thought to be critical elements in the future performance in global supply chains and therefore, should be a key concern of human resource management after the acquisition has been culminated. Using a unique dataset of corporate acquisitions in supply-chains, we examine how the development of the psychological contract elements affects retention of critical key global managers. We find that higher retention of the key management team members leads to higher performance after acquisition. We also find that the development of the psychological contract has a positive impact on the retention of key managers with global supply-chain relations. © 2010 Elsevier Inc

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Market-Based Assets and Shareholder Value: A Framework for Analysis

Cited by 1,303 publications

References 66 publications

Using Capital Markets as Market Intelligence: Evidence from the Pharmaceutical Industry

Using Capital Markets as Market Intelligence: Evidence from the Pharmaceutical Industry

Differences in decision-making criteria towards the return on marketing investment: A project business perspective

Supply-chain corporate venturing through acquisition: Key management team retention

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