IDEAS home Printed from https://ideas.repec.org/a/brf/journl/v8y2010i3p283-306.html
   My bibliography  Save this article

Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies

Author

Listed:
  • Graziela Fortunato

    (Fucape Business School)

  • Walter Ness

    (Pontificia Universidade Catolica do Rio de Janeiro)

  • Arilton Teixeira

    (Pontificia Universidade do Rio de Janeiro)

  • Paulo Cesar Motta

Abstract

This study aims to verify the contribution of advertising expendituresto firm value. To reach this goal, we considered business cycles, whichfollow a stochastic process and may influence the decision as to the amount to be spent in advertising. With the optimization of these expenditures under the business cycle effect, it is, in fact, possible to analyze whether the results positively contribute to firm value. Data from US companies of the consumer staples sector from 1997 to 2008 were employed to test the proposed model through multiple regression and panel data. The results indicate favorable evidences which confirm the proposed model.

Suggested Citation

  • Graziela Fortunato & Walter Ness & Arilton Teixeira & Paulo Cesar Motta, 2010. "Advertising Expenditures Interaction with Business Cycles and Firm Value: An Empirical Analysis with US Companies," Brazilian Review of Finance, Brazilian Society of Finance, vol. 8(3), pages 283-306.
    • Handle: RePEc:brf:journl:v:8:y:2010:i:3:p:283-306
    as

    Download full text from publisher

    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/download/1915/1941
    Download Restriction: no
    File URL: http://bibliotecadigital.fgv.br/ojs/index.php/rbfin/article/view/1915
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    advertising; marketing; finance; stochastic process; optimization.;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:brf:journl:v:8:y:2010:i:3:p:283-306. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcio Laurini (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.