Do market share and demand uncertainty influence the relation between advertising expenditures and shareholder value?

Katerina E. Hill, Matthew D. Hill and G.W. Kelly

Journal of Business Research, 2020, vol. 115, issue C, 61-69

Abstract: Evidence from multivariate regression models suggests market share and demand uncertainty influence the value to shareholders of advertising expenditures. Shareholder returns to advertising are lower for firms with greater market share over the full sample period; however, this market share effect dissipates during non-recession years. Results also show higher returns to advertising for sellers with more volatile revenues. From these results we infer that low market share firms with less predictable customer demand may be better positioned to unlock the full strategic value of advertising.

Keywords: Advertising expenditures; Market value; Shareholder value; Market share; Demand uncertainty (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296320302538
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:115:y:2020:i:c:p:61-69

DOI: 10.1016/j.jbusres.2020.04.028

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().