Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies
This study aims to verify the contribution of advertising expendituresto firm value. To reach this goal, we considered business cycles, which follow a stochastic process and may influence the decision as to the amount to be spent in advertising. With the optimization of these expenditures under the...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Brazilian Society of Finance
2010-10-01
|
| Series: | Revista Brasileira de Finanças |
| Subjects: | |
| Online Access: | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1915 |
| _version_ | 1818979559921418240 |
|---|---|
| author | Graziela Fortunato Walter L. Ness Arilton Teixeira Paulo Cesar Motta |
| author_facet | Graziela Fortunato Walter L. Ness Arilton Teixeira Paulo Cesar Motta |
| author_sort | Graziela Fortunato |
| collection | DOAJ |
| description | This study aims to verify the contribution of advertising expendituresto firm value. To reach this goal, we considered business cycles, which follow a stochastic process and may influence the decision as to the amount to be spent in advertising. With the optimization of these expenditures under the business cycle effect, it is, in fact, possible to analyze whether the results positively contribute to firm value. Data from US companies of the consumer staples sector from 1997 to 2008 were employed to test the proposed model through multiple regression and panel data. The results indicate favorable evidences which confirm the proposed model. |
| first_indexed | 2024-12-20T17:01:28Z |
| format | Article |
| id | doaj.art-8fd3fe57b57c4a6b8e479ac26c401b8f |
| institution | Directory Open Access Journal |
| issn | 1679-0731 1984-5146 |
| language | English |
| last_indexed | 2024-12-20T17:01:28Z |
| publishDate | 2010-10-01 |
| publisher | Brazilian Society of Finance |
| record_format | Article |
| series | Revista Brasileira de Finanças |
| spelling | doaj.art-8fd3fe57b57c4a6b8e479ac26c401b8f2022-12-21T19:32:30ZengBrazilian Society of FinanceRevista Brasileira de Finanças1679-07311984-51462010-10-0183283306Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US CompaniesGraziela FortunatoWalter L. NessArilton TeixeiraPaulo Cesar MottaThis study aims to verify the contribution of advertising expendituresto firm value. To reach this goal, we considered business cycles, which follow a stochastic process and may influence the decision as to the amount to be spent in advertising. With the optimization of these expenditures under the business cycle effect, it is, in fact, possible to analyze whether the results positively contribute to firm value. Data from US companies of the consumer staples sector from 1997 to 2008 were employed to test the proposed model through multiple regression and panel data. The results indicate favorable evidences which confirm the proposed model.http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1915advertisingmarketingfinancestochastic processoptimization. |
| spellingShingle | Graziela Fortunato Walter L. Ness Arilton Teixeira Paulo Cesar Motta Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies Revista Brasileira de Finanças advertising marketing finance stochastic process optimization. |
| title | Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies |
| title_full | Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies |
| title_fullStr | Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies |
| title_full_unstemmed | Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies |
| title_short | Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies |
| title_sort | advertising expenditures interaction with business cycles and firm value an empirical analysis with us companies |
| topic | advertising marketing finance stochastic process optimization. |
| url | http://virtualbib.fgv.br/ojs/index.php/rbfin/article/view/1915 |
| work_keys_str_mv | AT grazielafortunato advertisingexpendituresinteractionwithbusinesscyclesandfirmvalueanempiricalanalysiswithuscompanies AT walterlness advertisingexpendituresinteractionwithbusinesscyclesandfirmvalueanempiricalanalysiswithuscompanies AT ariltonteixeira advertisingexpendituresinteractionwithbusinesscyclesandfirmvalueanempiricalanalysiswithuscompanies AT paulocesarmotta advertisingexpendituresinteractionwithbusinesscyclesandfirmvalueanempiricalanalysiswithuscompanies |