Deconstructing Marketing's Effects on Firm Value

摘要

We answer three research questions in our study.1.What is the base effect of marketing expenses(and its components of advertising,promotion and distribution)on firm performance? 2.How does marketing spend shift among advertising,promotion and distribution expenses when there is a financial crisis? 3.What is the effect of this shift in marketing spends on firm performance during a financial crisis? We use panel data from public and private sector Indian companies across multiple sectors from Prowess database.Marketing expenses are split into advertising,promotion,and distribution expenses as provided in the database.We use data for years 1988-2017 to estimate our equations.We use a fixed effects panel model accounting for endogeneity using control function approach.