The Effect of Marketing Investment on Firm Value and Systematic Risk

Journal of Open Innovation: Technology, Market and Complexity

Judit Sagi¹  Musaab Mousa²  Saeed Nosratabadi²  Amir Mosavi³ 

[1] Department of Finance, Budapest Business School, 1149 Budapest, Hungary;Doctoral School of Economic and Reginal Sciences, Szent Istvan University, 2100 Godollo, Hungary;John von Neumann Faculty of Informatics, Obuda University, 1034 Budapest, Hungary;

关键词: marketing;    investment;    emerging markets;    firm value;    systematic risk;    share value;   

DOI  :  10.3390/joitmc7010064

来源: DOAJ

【 摘 要 】

Analyzing the financial benefit of marketing is still a critical topic for both practitioners and researchers. Companies consider marketing costs as a type of investment and expect this investment to be returned to the company in the form of profit. On the other hand, companies adopt different innovative strategies to increase their value. Therefore, this study aims to test the impact of marketing investment on firm value and systematic risk. To do so, data related to four Arabic emerging markets during the period 2010–2019 are considered, and firm share price and beta share are considered to measure firm value and systematic risk, respectively. Since a firm’s ownership concentration is a determinant factor in firm value and systematic risk, this variable is considered a moderated variable in the relationship between marketing investment and firm value and systematic risk. The findings of the study, using panel data regression, indicate that increasing investment in marketing has a positive effect on the firm value valuation model. It is also found that the ownership concentration variable has a reinforcing role in the relationship between marketing investment and firm value. It is also disclosed that it moderates the systematic risk aligned with the monitoring impact of controlling shareholders. This study provides a logical combination of governance–marketing dimensions to interpret performance indicators in the capital market.

【 授权许可】

Unknown