Demystifying the Impact of Marketing Decisions on Market Share and Firm Value - A Chain-of-effects Perspective
MetadataShow full item record
This paper uses the ‘chain-of-effects’ framework for marketing productivity and agency theory to explore the underlying mechanism that drives the effects of marketing decisions (measured by marketing expenses and relative compensation for executive directors with marketing experience) on firm value (Tobin’s Q) via firm performance (market share). Data from 491 Chinese listed companies over the 2010-14 period shows that marketing expenditure positively affects firm value but not through market share. In contrast, relative compensation positively affects firm value, both directly and through market share. Moreover, the positive effect of relative compensation on market share appears to be stronger in an organization with more severe agency conflicts. Besides extending current research on the effects of marketing decisions on financial outcomes, these results highlight the importance of having executive directors with marketing experience to increase firm value.
Showing items related by title, author, creator and subject.
Sharma, Piyush (2019)This paper combines the ‘chain-of-effects’ framework for marketing productivity with agency theory to explore the underlying mechanism that drives the effects of marketing decisions (measured by marketing expenses and ...
Woodside, Arch (2010)Both successful and unsuccessful design+marketing projects in high fashion products and services represent creating and implementing recipes or paths of key success factors (KSFs). While implementing any one KSF is not ...
Impact of relative compensation to executive directors with marketing experience on marketing performance: Toward an integrative frameworkSharma, Piyush ; Leung, Tak Yan; Adithipyangkul, Pattarin (2022)Purpose – This paper combines the agency theory and efficiency wage theory to explore the effects of relative compensation for executive directors with marketing experience on two marketing outcomes (marketing efficiency ...