Myopic marketing management and stock performance in the short term: the moderating role of asset turnover

Evelini Lauri Morri Garcia (), Valter Afonso Vieira () and Pravin Nath ()
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Evelini Lauri Morri Garcia: State University of Maringá
Valter Afonso Vieira: State University of Maringá
Pravin Nath: Clemson University

Marketing Letters, 2025, vol. 36, issue 2, No 8, 273-287

Abstract: Abstract The literature on marketing myopia suggests the need for exploring conditions under which myopic marketing management differs in its impact on stock performance. To that end, the authors investigate the role of asset turnover (AT), which is the ratio of the firm’s sales or revenues to its assets, indicating the effectiveness with which a firm is using its assets to generate incomes. AT suggests a persistent signal of the firm’s potential for future cash flows. The authors test their model on data from 210 publicly traded Brazilian companies from 2001 to 2017. Results show that when there is high AT, the stock performance in the short term (i) is higher in non-myopic firms with positive earnings surprise compared to myopic firms and (ii) does not significantly differ between non-myopic firms with negative earnings surprise and myopic firms. The study demonstrates that AT contributes to the identification, signalization, and evaluation of marketing myopia.

Keywords: Myopic marketing; Efficiency; Revenue; Abnormal returns; Asset turnover (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11002-024-09744-4

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