Top PDF A Research on The Effects of Marketing Spending on Firm Value

The purpose of this study is to investigate the influence of “Marketing Expenses” on firm value. The study uses data belonging to 120 firms, which are traded in Borsa Istanbul (BIST) in the period of 2009-2012. The independent variables used in the study consist of “Return on Assets” (ROA) and “Return on Equity” (ROE), which are accounting based performance indicators. The other is "Tobin's q" ratio which is market-based ratio. The regression and correlation analysis have been employed in empirical analyzes. The result of the conducted analysis showed that the increase in marketing expenses influences value of the firms in a positive way. As a result, organizations should accept the marketing expenses not only as a spending but also an investment as a value added to business.

The impact measures were subjective in the sense that they were based on Likert-scale responses provided to SMEs managers. While we have been careful in assessing potential biases inherently associated with such data, it would have been desirable to have more objective measures of impact, that is, although there probably is a relationship between firm size and both the sites and skill levels of users, the current use measures are only a proxy for ERP use. Furthermore, our sample may represent advanced ERP firm users in each site rather than a representative sample of the overall population. Also, our measure of ERP value is general in the sense that it could include specific performance metrics such as financial performance indicators. Therefore, a more complete test of the process model would require more comprehensive, longitudinal data or in depth case studies over time. Moreover, possibly post-implementation stages show different performance ratios depending on the number of years of ERP use. A possible future work would be to use Nicolaou (2004b) eight operational measures (so-called first- order effects) and examine gains/losses in firms’ operational efficiency.

Evaluation methods of the service value of ecosystem During the calulation of the ecosystem service value of in Daqing area (Sawut et al., 2013), considering the real situation of the researched areas, some modiications are made in the reference. The residential settlement, transportation and water conservancy facilities belong to the construction utilization, referred to research results of Costanza (Costanza et al., 1997). The parameter of their ecological value is 0; the unutilized land is divided as: the saline-alkali land, marsh, sand, mud lat and reed shallows, wild grass ground, and bare rocks in the land utilization plan. With the reason of short of the statistical data of their real utilization, they are considered together as unutilized land. Their ecological value is the average of the desert and grassland (Xu et al., 2008). The calculation formula of the ecosystem service value is as Eq. 2.

Restrictions on funds departure can be imposed to control a substantial departure of funds that causes: the currency depreciation and a decline of market participants returns (Vithessonthi & Tongurai, 2010), in other words, capital outflows are directly related to stock prices falls. Thus, if it is believed that controls on outflows are able to manage effectively capital flows, it is likely that investors will react positively to the announcement of the imposition of these policy tools. A stock price rise after the implementation of restrictions on outflows, can also be stimulated by the fact that the advantages of having an open economy are only related with the positive effects of the entry of foreign funds on the country (Block & Forbes, 2004), which is not directly affected by these controls.

, while t table 1.987 (df = n-2, p-value = 0.05). Because t count> t table, and obtained a significance value 0.000 <p value (0.05) it means that the positive effects are statistically significant (HA accepted). These means ROA (Y4) has positive and significant impact on firm value (Z). These indicates that ROA can be used to predict the value of the company. The results of this study are consistent with theories and opinions Modligiani and Miller that the enterprise value is determined by the earning power of assets. The results of this study also supports research conducted by Vishnani and Shah (2008), Ulupui (2007), Yuniasih and Wirakusuma (2007), who found that the ROA has positive and significant impact on corporate value. But it’s not supported by Pranata Suranta (2004), Kaaro (2002) who found that ROA has negative effect on the firm value. The influence of asset turnover ratio (Y5) on firm value (Z) indicated by the path coefficients (P 11) - 0.026, it’s means asset turnover ratio negatively affect firm value, then the HA rejected. The calculation result obtained t count -0.382, while t table 1.987 (df = n-2, p-value = 0.05). Since t count <t table, and obtained a significance value 0.704> p value (0.05) it means that negative effects are statistically insignificant. These means asset turnover ratio (Y4) have negative effect on firm value (Z) but not significant. The results of this study support Ulupui (2007) that the asset turnover is affect negative but not significan on stock returns. But not in line with the results of Kennedy (2003) which showed a variable asset turnover significantly influence stock returns.

on theoretical considerations. Moreover, because we administered data collection using a survey tool embedded in Facebook, the conciseness of the questionnaire was of high priority. Thus, we used reduced measurement scales and focused on the most important control variables only. However, some other characteristics of the context and of the interviewees could have a systematic influence on the relationships surveyed. This provides an attractive starting point for further research. Future studies should test our results in terms of their sensitivity to the survey instrument and additional contextual factors. For instance, qualitative methods could help to uncover the objective structure of reasoning behind the online discussion within social media communities. Moreover, future research should also collect data in an offline setting, comparing Facebook fangroup members with fans of the celebrity sports team not engaging in social media. This approach could help to filter out the effect of the social medium itself, more comprehensively. In the present study, perceived brand value was modelled as a dependent variable being predicted by perceived brand image and perceived celebrity endorser credibility. The literature suggests that perceived value has a considerable impact on behavioural intentions, such as purchase, loyalty or word-of-mouth (PARASURAMAN and GREWAL, 2000). In view of this, future research should also incorporate loyalty or other purchase-related variables in an advanced model in which perceived brand value would serve as a mediator between perceived brand image, celebrity endorser credibility and, for instance, word- of-mouth or loyalty intentions towards the sponsoring firm. Doing so would enable us to infer managerial implications directly related to boosting economic performance.

on overall company evaluations‖. Murray and Vogel (1997) have investigated the effect of associated CSR practices on consumers and presented similar findings. The CSR activities mentioned in the research are, for instance, environmental protection practices (energy conservation), engagement in acts to promote human welfare, corporate social marketing (electric safety education for schoolchildren), contribution to the economic development of the region, and consumer protection program. Their research found that CSR programs lead to improved customer attitudes towards the firm, including beliefs about the company‘s honesty, consumer responses, and increased support for the firm in labor or government disputes. Mohr et al. (2001) conducted a consumer interview project for investigating the impact of firms‘ CSR on consumer behavior. How well are consumers aware of the CSR level of individual firms? Are the purchase decisions of consumers affected by a firm‘s CSR, and how much? How do consumers think about firms‘ motivation for being socially responsible? Mohr et al. (2001) found that consumers are positive to business in general. It is not wrong to pursue economic interests. Consumers expect firms to be socially responsible. The attitudes of consumers toward socially responsible firms are more positive than toward irresponsible firms. Consumers are aware that socially responsible firms are helping themselves by practicing CSR. But this perception of consumers does not harm the positive consumer evaluations toward socially responsible firms. The study of Mohr et al. (2001) is enlightening for researchers, managers and policy makers. For managers specifically, it is clear that consumers do care about a firm‘s CSR and act accordingly. Some consumers are highly ethical in

Diamond (1984) showed that one of banks’ main functions and reasons for their existence is that they monitor the actions of their borrowers on behalf of the fund providers, the depositors. These - because of free riding problems and excessive transaction costs - can not undertake efficient monitoring themselves. The necessity of monitoring stems from the asymmetric distribution of information between banks and their debtors. Since the actions of a firm are not fully observable the firm may have incentives to undertake actions that are not desirable for a bank, i.e., actions that may increase the risk of non-repayment of the bank loan. 1 To prevent their debtors from such actions banks monitor firms in order to induce them to behave in the way that is desirable for the bank. But what happens if banks’ monitoring incentives are eroded, say, because banks do not carry the risk that a firm defaults on a loan anymore? Or to a lesser extent? Less or no monitoring incentives at all can be expected to reduce the level of monitoring a bank undertakes. A condition under which it would be of reduced value for a bank to monitor is given when a bank transfers the loan risk to a third party which, in turn, can not effectively induce the bank to exert the amount of monitoring the bank would have chosen if the loan risk had remained on the balance sheet of the bank. As markets for the transfer and trading of credit risk have greatly evolved over the past few years 2 it

proxy for firm performance). This approach differs from the majority of research, which uses Tobin’s Q as a proxy for firm performance. Pagach and Warr (2010), whose study examines the change of financial characteristics around ERM adoption, take a different approach. They measure the change in Earnings volatility, Leverage, Return on equity (ROE), Slack, Opacity, Market-to-book ratio, R&D expense on total asset, Duration ratio, Loan loss provision and Tier 1 Risk adjusted capital ratio before and after the CRO appointment, finding no significant effect. McShane, Nair and Rustambekov (2010) found a roughly positive relationship between ERM rating and Tobin’s Q, but results show that the firm value increases with a more sophisticated TRM and not with the adoption of ERM. Tobin’s Q as a proxy for firm value has been adopted also by Waveru and Kisaka (2011) for a Kenyan sample and by Tahir and Razali (2011) for a Malaysian sample. While the former found a significant effect of ERM level on firm value, the latter found still positive but not significant results. Hoyt and Liebenberg (2011) applied the same approach for an US sample, finding that insurers with ERM programs are more valued than other non-adopters. Bertinetti, Cavezzali and Gardenal (2013) conducted a twofold study for financial and non-financial European companies. Firstly, they focused on the relationship between ERM and Tobin’s Q, finding strong positive results, and secondly they studied the factors affecting ERM adoption, finding significant results for company opacity, size and financial slack. More recently, Ai, Chen and Zhao (2014) found evidence for a positive and significant relation between ERM and firm value in Chinese non-financial firms.

Rosso et al (2010) surveyed the psychological and organizational literature to find out where and how employees actually find meaning in work. Various sources of meaningfulness in work were pinpointed, namely the self, others, the work context and content, and spiritual life. The authors then built an overarching model based on the two dimensions most fundamental to the creation or maintenance of meaningful work. One dimension consists in a continuum that ranges from a desire for agency to a desire for communion, which captures the extent to which the source of meaning lies within the individual or in a collective group, while the other dimension consists in a continuum ranging from self-directed to other-directed action (Lopes, 2018). The relevance of the model is supported by empirical tests that highlight “the importance of reciprocal dynamics between individuals and groups [… whereby] the individual works to benefit the self and the collective, and the fruits of this work enhance both self and collective” (Steger et al, 2012, p. 324). Thus, what is critical for work to be meaningful is that it must simultaneously benefit society and possess an intrinsic value for the worker himself. Overall, empirical evidence suggests that work is at least as much a matter of judgement on the usefulness for others and oneself of the work performed than a calculation of whether the wage compensates for its disutility.

In many countries firms have the possibility to issue different types of shares with distinct voting and dividends rights. Pajuste (2005) and Villalonga and Amit (2006) document that the fraction of dual-class stocks is over 30% for some European countries and about 12% in the U.S. Shares with different voting rights entail an asymmetry in cash flow and voting rights. To compensate their restricted voting rights, preferred shareholders receive dividends before common stockholders. The differences in cash flow and voting rights are the starting point of a growing literature which discusses minority shareholder protection and financial markets’ development. Two main questions derive from this debate. First, how much are investors willing to pay to obtain control? The answer should depend on the amount of private benefits the controlling shareholder may extract from the firm. Second, what are the effects of multi-class issuances on the value of the firm?

Another concern is that some firms may anticipate that their annual revenue will be just above the eligibility threshold and make adjustments that would not have be considered if the program were not implemented. Such adjustments could be implemented either by postponement part of firm sales for the following year or by hiding sales off the books. This may imply a similar correlation to the one mentioned above. However, the timing of the SIMPLES legislation helps us to assert that this practice should not be relevant. The threshold value of R$ 720,000 for 1996 gross revenue, which defined eligibility for 1997, was defined by law in December 1996 and was raised to R$ 1,200,000 by a law passed in December 1998 12 . Therefore, we argue that in 1996 and 1998 firms could not manipulate their revenue flow to match the eligibility criteria because they would have learned about this criterion in the last month of the respective years.

Abstract: The development of fisheries sector is intended to improve the role of creating a strong linkage with other sectors by increasing the value added, absorbing labor forces and increasing people’s income so that this can make the economy grow well. The value added is a value that increases due to a commodity that has been processed, transported or stored in a production. Lamongan and Pelabuhanratu regencies are one of fisheries centers on the north and the south coast of Java Island. The aim of this research was to know the value added and the business margin of fisheries from the processing and marketing aspects. The research was carried out in two locations; Northern coast (Lamongan regencies) and Shouther coasts (Pelabuhanratu regencies), Indoneisa. The data used were primary data; the people involved in the business including fishing, marketing and processing product. The results showed that the process of fisheries product yielded the value added and margin that were created from the incorporation of business benefit, added input contribution/ other input and direct reward for the labor forces. The value added and the business margin of product processing can reach 2 to 3 fold from the main input value. The value added and the business margin of fisheries product processing were very big. This was the source of economy growth there. The effort to develop the business of fisheries product processing in the small scale need to be supported with various programs especially in the market access and funding.

present value of the expected excess returns to equity in perpetuity). Ohlson’s residual income model was received with enthusiasm (though it was not revolutionary), since similar models extending the dividend discount model to incorporate excess returns on future opportunities were divised in Walter (1966), Mao (1974). Later, Lundholm&Keefe (2001) showed that discounted cash flow models and residual income models yielded identical valuations of companies, as long as all assumptions were consistent. Accountants took a liking to Ohlson’s model due to its explicit use of book value, and revitalizing the significance of accounting earnings, that was questioned in Lev (1989). The Ohlson model was posteriorly backed by Frankel&Lee (1998), Hand&Landsman (1999), Dechow et al (1999), though the work in Lo&Lys (2005) states that in order to really back up the Ohlson model, one should question if “changes in equity value are correlated with changes in book value of equity and net income”, and that the Ohlson model “does no better on these tests than established models”.

Relative advantage is defined as the extent to which a person views an innovation as offering an advantage over previous ways of performing the same task (Roger, 1983; Agarwal & Prasad, 1997). Because Internet banking services allow customers to access their banking account from any location 24 hours a day and 7 days a week, it provides an enormous advantage and convenience to users (Tan & Teo, 2000). It also gives customers greater control over managing their finances, as they are able to check their accounts easily. Besides, a customer’s Internet experience, his or her banking needs can affect his adoption. As there are more financial products and services, it is expected that individuals with many financial accounts and who subscribe to many banking services will be more inclined to adopt Internet banking. Tan and Teo (2000) has reported that potential adopters of Internet banking services are likely to own multiple banking accounts and subscribe to various banking services. Rogers argues that potential adapters, who are allowed to experiment with an innovation will feel more comfortable with the innovation and are more likely to adopt it. Thus, if customers have the opportunity to try the innovation, certain fears of the unknown may be minimized. Government policy could also aid or hinder Internet diffusion (Mbarika, 2002). This is consistent with the national systems of innovation theory that posits that government policies may encourage or mandate technology development and adoption (King et. al., 1994; Wolcott et. al., 2001). Tan and Teo (2000) suggest that the greater the extent of government support for Internet commerce, the more likely Internet banking will be adopted, thus, confirming Goh’s (1995) suggestion that governments can play an interventionist and leading role in the diffusion of innovation. Potential users in turn would view new applications such as Internet banking services more favorably and hence be more like to use them. Thus, the second alternative hypothesis is:

CCC Investory Conversion Period+Recivable Conversion Period-Payable Deferral Period  (1) where in Eq. (1), the inventory conversion period (ICP) is added to the receivable conversion period (RCP) and then the payable deferral period (PDP) is deducted from it to calculate the cash conversion cycle (CCC). The calculated variable represents cash management and the lower it is the more efficient will be the cash management (Wang, 2002). Other variables of this equation are calculated as follows: the inventory conversion period is calculated by dividing the average inventory by the average price during a year and the receivable conversion period is calculated by dividing the average accounts receivable by the average sale during a year and the payable deferral period is calculated by dividing the accounts payable by the actual cost. As mentioned earlier, in this study, the population of this survey includes all banks licensed by the Central Bank of the Islamic Republic of Iran. Therefore, sampling method was the complete sampling and includes all members of statistical population during the year 2011. All information has been extracted from official reported from Tehran Stock Exchange and investigated banks’ financial statements. Statistical methods of this study is to estimate the effect of liquidity management on the value of stock market pattern of ordinary least squares (OLS) based on econometric method. Econometrics is dealing with systematic study of economic phenomena using observed data (Arrow, 1960). Although many econometric methods express the application of statistical models, some specific characteristics of economic data are associated with the nature of domestic circumstances. Economic data are generally observational, and didn’t obtain from controlled tests. Since economic units operate with each other, the observed data show a complex economic equilibrium and they are not derived from a simple act of communication caused by precedence or technology. In this study, simple linear regression is used as follows.

Third, as usual in applied work, the analysis faces data contraints. We based the analysis on non-weighted 2004 averages from our original data sample, and 2004 industry output data from ICP-ANACOM (2005a), but the merger would have only been carried out in 2007. In addition, it would have taken some time to actually merge the operations of the two firms. Thus, not only would prices, margins, and output data have changed somewhat in this period, but the industry as a whole might have also evolved. 9 Further, it may be that our proxy for the margin, the EBITDA, captures not only price-cost margins but also efficiencies that reduce fixed costs, such as consolidation of duplicated network installations. If this were the case, our inference about the reduction in the average industry marginal cost might be over- estimated.

Market orientation, or stakeholder orientation, focuses on understanding which values are the most important to satisfy certain stakeholders. On the one hand, this focus leads to lowering total costs in the supply chain (Cannon & Homburg, 2001) and to a greater probability of success for the new product, improved customer retention, and superior growth (Slater & Narver, 1995). On the other hand, the set of benefits the organization promises to deliver to the customer or to other stakeholders is based on market-oriented feedback and organizational learning (Vargo & Lusch, 2004, 2008b). The organization’s ability to continuously aggregate intelligence regarding present and latent needs of customers and about how to satisfy those needs (Kohli & Jaworski, 1990) is essential for the creation and improving of the customer value (Slater & Narver, 2000). Of course, this gathering of intelligence should not only consider customers but also other stakeholders like suppliers, distributors, competitors, partners, reference groups, state, community, etc. (Carvalho, 2004; Teece, 2010).

frequency of the structure, and its intended use, this method was refined to enable increasingly adequate designs [4]. Buildings have longer periods of vibration and periods of vibration, composed largely of orthogonal, closely spaced modes. Hence, Equivalent static analysis method was adopted in order to design buildings and overcome effect of earthquake on it. In this study I have performed static analysis as per IS 1893-2002. To study the effect of irregular plan and shape configuration I have developed 9 models in STAAD Pro V8i software. Various types of input data to model the all the 9 models were kept same to obtain the predicted behaviour. Various types of data adopted for creating the models are as under,

At this scale of temperature and time (Fig. 9) it is difficult to identify the characteristic changes of the sample temperature, respectively, during the annealing (stage T2 - isothermal annealing), hyperquenching and quenching bronze (stage T3 - cooling in ambient air and T4 stage - cooling in 10% NaCl solution in water). Figure 10 shows representative characteristics of temperature changes during the isothermal annealing bronze sample at a constant temperature of t=1000 °C for 3600 s. There was a decrease of the temperature characteristic bronze samples during the annealing process in the studied range of isothermal annealing time (30, 60 and 120 min.). The presented characteristics t=f(τ) for a sample of bronze in the furnace that, after heating the furnace and the sample to a temperature of 1000 °C, there was a gradual decrease in temperature of the sample to about 996°C. Decrease of the temperature of the sample is associated with absorption of heat by the phase existing in bronze at 1000 °C, necessary for the occurrence of the following diffusion processes: