 Marketing investments and firm performance in manufacturing sector: a panel threshold model for ChinaDinesh Jaisinghani and Kakali Kanjilal Journal of the Asia Pacific Economy, 2019, vol. 24, issue 1, 117-126 Abstract: Many firms find it difficult to accurately identify the level of investments in marketing activities that can maximize their profitability. The current work is aimed at helping firms in identifying the optimal level of marketing expenditure. The study has been conducted for 1363 publicly listed firms in China for the period 2008–2017. The current study utilizes threshold panel regression analysis. The study contends that the optimal level of investments in marketing is contingent upon firm’s size. The results confirm the existence of a single threshold value that helps in determining the optimal level of marketing investments. It is found that, for firms that are smaller that the cut-off value of size, high level of investments in marketing is associated with improved firm performance. However, for the firms that are larger than the cut-off value of size, high level of investment in marketing is associated with reduced firm performance. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:24:y:2019:i:1:p:117-126 Ordering information: This journal article can be ordered from DOI: 10.1080/13547860.2018.1554617 Access Statistics for this article Journal of the Asia Pacific Economy is currently edited by Leong Liew More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals |
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