Influence of marketing communications on the financial performance of firms: Examining the moderating role of advertising intensity and the quadratic model

초록

This study empirically investigates the value relevance of marketing communications with the use of a sample of 10,101 companies. Three notable findings emerged. First, marketing communication expenditures positively influence the sales of firms. However, such expenditures do not significantly influence the market value of firms. Second, advertising expenditure is significantly associated with market value only for firms with low advertising intensity. In contrast, contribution expenditure is significantly associated with market value only for firms with high advertising intensity. Third, contribution expenditure exhibits inverted U-shaped relationships with both sales and market value of firms. Results are expected to bridge the gap on research interests between marketing communication and accounting disciplines, and to offer managerial implications for marketing communication practitioners.

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