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Advertising spending, firm performance, and the moderating impact of CSR

Author

Listed:
  • A. George Assaf

    (University of Massachusetts-Amherst, USA)

  • Alexander Josiassen

    (Copenhagen Business School, Denmark; RMIT University, Australia)

  • Jin Sun Ahn

    (University of Massachusetts-Amherst, USA)

  • Anna S. Mattila

    (The Pennsylvania State University, USA)

Abstract

This article investigates the potential of corporate social responsibility (CSR) to influence the link between advertising spending and firm performance. Drawing upon the literature of CSR, we hypothesize that CSR positively moderates the relationship between advertising spending and firm performance. We focus on two types of firm performance: sales and firm value. Using two samples from both the hotel and restaurant industries, we found that firms with higher levels of CSR enjoy higher returns on advertising spending than firms with lower levels of CSR. We discuss the theoretical and managerial implications of these findings and provide direction for future research.

Suggested Citation

  • A. George Assaf & Alexander Josiassen & Jin Sun Ahn & Anna S. Mattila, 2017. "Advertising spending, firm performance, and the moderating impact of CSR," Tourism Economics, , vol. 23(7), pages 1484-1495, November.
  • Handle: RePEc:sae:toueco:v:23:y:2017:i:7:p:1484-1495
    DOI: 10.1177/1354816617704739
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    References listed on IDEAS

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    Cited by:

    1. Abdulkadir Pehlivan & Bilal Gerekan & Mahmut Kocan, 2020. "The Effect of Operating Expenses on Growth and Performance: An Empirical Analysis of the Petroleum and Chemistry Industry in Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(11), pages 1299-1308, November.
    2. Montserrat Boronat-Navarro & José Antonio Pérez-Aranda, 2019. "Consumers’ perceived corporate social responsibility evaluation and support: The moderating role of consumer information," Tourism Economics, , vol. 25(4), pages 613-638, June.
    3. Michael S Lin & Yeasun K Chung, 2019. "Understanding the impacts of corporate social responsibility and brand attributes on brand equity in the restaurant industry," Tourism Economics, , vol. 25(4), pages 639-658, June.
    4. Rukmani Gounder, 2022. "Tourism-led and economic-driven nexus in Mauritius: Spillovers and inclusive development policies in the case of an African nation," Tourism Economics, , vol. 28(4), pages 1040-1058, June.
    5. Rui Qi & David A Cárdenas & Xichen Mou & Simon Hudson, 2018. "The strategic value of advertising expenditures in the tourism and hospitality industry," Tourism Economics, , vol. 24(7), pages 872-888, November.
    6. Thang Quyet Nguyen & Nguyen Thanh Long & Thanh-Lam Nguyen, 2019. "Impacts of corporate social responsibility on the competitiveness of tourist enterprises: An empirical case of Ben Tre, Vietnam," Tourism Economics, , vol. 25(4), pages 539-568, June.
    7. Ricardo Sellers-Rubio & Aurora Calderón-Martínez, 2021. "Brand strategy scope and advertising spending: The more the better?," Tourism Economics, , vol. 27(1), pages 70-85, February.

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