Does it pay to withdraw marketing metrics disclosure? An empirical study of retailers’ cessation of monthly comparable-store sales

Chenxi Zhou and Jibin Yu

Journal of Business Research, 2023, vol. 156, issue C

Abstract: The marketing literature shows the necessity of an increased disclosure of marketing metrics. However, very few studies have examined its importance from a reverse lens—the result of withdrawing disclosure is scant. This study provides a new perspective by examining whether and when the withdrawal of marketing metrics affects the shareholder value of a focal firm. We center on one voluntarily disclosed marketing metric: monthly comparable store sales (CSS) in the retail industry. We conduct an event study to analyze the monthly CSS cessation announcements of 94 chain retailers. The empirical results show that withdrawal events do not necessarily decrease retailers’ abnormal returns. The decrease or increase in abnormal returns depends on external and internal factors. Retailers facing lower industry competition and higher forecast errors experience lower abnormal returns. However, those with less diversified customer bases, better retailing outcomes, and fewer intangible resources experience higher abnormal returns for withdrawal decisions.

Keywords: Comparable-store sales; Withdrawal decision; Retail stock return; Marketing metrics; Marketing information disclosure (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296322009778
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:156:y:2023:i:c:s0148296322009778

DOI: 10.1016/j.jbusres.2022.113512

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 ().