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The value relevance of major media advertising expenditures: Some U.K. evidence

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  • Shah, Syed Zulfiqar Ali
  • Stark, Andrew W.
  • Akbar, Saeed
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    Abstract

    This study examines whether ACNielsen MEAL major media advertising expenditure measures, that are publicly available at a cost, have value relevance. Our results suggest that these advertising-expenditure measures are positively associated with market value. We also find little difference in the value relevance of these expenditures among different sizes of firms. Value relevance is found to be present only for nonmanufacturing firms. This suggests that the costly information provided by ACNielsen MEAL surveys may be potentially useful to market participants in valuing firms, at least for nonmanufacturing firms.

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    File URL: http://www.sciencedirect.com/science/article/B6W4P-4W0R3HK-1/2/be7cf2f0a8d4bc9651680df9f0794208
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    Bibliographic Info

    Article provided by Elsevier in its journal The International Journal of Accounting.

    Volume (Year): 44 (2009)
    Issue (Month): 2 (June)
    Pages: 187-206

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    Handle: RePEc:eee:accoun:v:44:y:2009:i:2:p:187-206

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    Web page: http://www.elsevier.com/locate/inca/620179

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    Keywords: Advertising Value relevance Disclosure Intangible assets;

    References

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    Cited by:
    1. Shah, Syed Zulfiqar Ali & Liang, Shuang & Akbar, Saeed, 2013. "International Financial Reporting Standards and the value relevance of R&D expenditures: Pre and post IFRS analysis," International Review of Financial Analysis, Elsevier, vol. 30(C), pages 158-169.
    2. Vassili Joannides & Nicolas Berland & D. T. Wickramasinghe, 2010. "Post-Hofstede diversity/cultural studies: what contributions to accounting knowledge?," Grenoble Ecole de Management (Post-Print) hal-00676570, HAL.

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