سهم تغییرات در هزینه های تبلیغاتی برای درآمد و ارزش بازار

We examine the asset value of advertising expenditures for a sample of 320 firms with reported advertising expenditures for each of the 10 consecutive years ending in 1994. We find that, depending upon the industry, changes in advertising expenditures are significantly associated with earnings up to five years following the year of the expenditure. Furthermore, the asset values are significantly associated with the market values of the firms. Across all industries, the asset value of advertising expenditures appears to have a 3-year life with the greatest value on the current year and declining value in subsequent years. Asset values are found to be longest lived in the consumer products and industrial products industries and shortest lived in the sales and services industry.

Direct benefit studies measure the relation between advertising expenditures and hypothesized future benefits. Peles (1970) reported an association between current-year sales and advertising expenditures from up to 3 years prior to the current year. More recently, Green, Barclay, and Ryan (1995) examined determinants of long-term performance of entrants into the software industry and found significant and long-lived benefits to advertising among word processing suppliers. They found no future benefits, however, for entrants in the business graphics market, a result they attributed in part to the structural differences between the two markets during their product introduction phases.

This study examines the asset value of advertising expenditures for 320 firms with reported advertising expenditures for each of the 10 consecutive years ending in 1994. We find that, depending upon the type of product, changes in advertising expenditures are significantly associated with earnings up to 4 years following the year of the expenditure. Across the combined industries in our sample, the asset value of advertising expenditures appears to have a 3-year life, and advertising assets are associated with market value. Overall, advertising asset value is greatest in the current year and declines uniformly in subsequent years. Asset values are longest lived in the industrial products industry and shortest lived in the sales and services industry.