On the value relevance of retailer advertising spending and same-store sales growth

In response to recent calls to study factors that determine a retailer's stock price, this study draws on signaling theory to examine the impact of two key marketing metrics that are widely disclosed by retailers to investors, advertising spending and growth in same-store sales (COMPS), and hig...

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Main Authors: TULI, Kapil R., MUKHERJEE, Anirban, Dekimpe, Marnik
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2012
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/3485
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4484/viewcontent/On_the_value_relevance_of_retailer_advertising.pdf
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spelling sg-smu-ink.lkcsb_research-44842020-01-14T01:15:39Z On the value relevance of retailer advertising spending and same-store sales growth TULI, Kapil R. MUKHERJEE, Anirban Dekimpe, Marnik In response to recent calls to study factors that determine a retailer's stock price, this study draws on signaling theory to examine the impact of two key marketing metrics that are widely disclosed by retailers to investors, advertising spending and growth in same-store sales (COMPS), and highlights the moderating role of various firm- and sector-specific factors. Using a stock-response model estimated on a sample of 1,646 observations for 257 retailers, the authors find that the value relevance of advertising spending and COMPS depends on the financial condition of, and the competitive pressures faced by, the retailer. In addition, the positive effect of COMPS on stock returns is found to be stronger in the presence of decreases in advertising spending. 2012-04-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/3485 info:doi/10.1016/j.jretai.2012.07.001 https://ink.library.smu.edu.sg/context/lkcsb_research/article/4484/viewcontent/On_the_value_relevance_of_retailer_advertising.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Value relevance Advertising spending COMPS Same store sales growth Earnings Leverage Firm value Advertising and Promotion Management Marketing
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Value relevance
Advertising spending
COMPS
Same store sales growth
Earnings
Leverage
Firm value
Advertising and Promotion Management
Marketing
spellingShingle Value relevance
Advertising spending
COMPS
Same store sales growth
Earnings
Leverage
Firm value
Advertising and Promotion Management
Marketing
TULI, Kapil R.
MUKHERJEE, Anirban
Dekimpe, Marnik
On the value relevance of retailer advertising spending and same-store sales growth
description In response to recent calls to study factors that determine a retailer's stock price, this study draws on signaling theory to examine the impact of two key marketing metrics that are widely disclosed by retailers to investors, advertising spending and growth in same-store sales (COMPS), and highlights the moderating role of various firm- and sector-specific factors. Using a stock-response model estimated on a sample of 1,646 observations for 257 retailers, the authors find that the value relevance of advertising spending and COMPS depends on the financial condition of, and the competitive pressures faced by, the retailer. In addition, the positive effect of COMPS on stock returns is found to be stronger in the presence of decreases in advertising spending.
format text
author TULI, Kapil R.
MUKHERJEE, Anirban
Dekimpe, Marnik
author_facet TULI, Kapil R.
MUKHERJEE, Anirban
Dekimpe, Marnik
author_sort TULI, Kapil R.
title On the value relevance of retailer advertising spending and same-store sales growth
title_short On the value relevance of retailer advertising spending and same-store sales growth
title_full On the value relevance of retailer advertising spending and same-store sales growth
title_fullStr On the value relevance of retailer advertising spending and same-store sales growth
title_full_unstemmed On the value relevance of retailer advertising spending and same-store sales growth
title_sort on the value relevance of retailer advertising spending and same-store sales growth
publisher Institutional Knowledge at Singapore Management University
publishDate 2012
url https://ink.library.smu.edu.sg/lkcsb_research/3485
https://ink.library.smu.edu.sg/context/lkcsb_research/article/4484/viewcontent/On_the_value_relevance_of_retailer_advertising.pdf
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