Does Advertising Expenditure Impact Firm Value: A Case of Indian FMCG Industry

Mandeep Mahendru; Kalyan K De

Does Advertising Expenditure Impact Firm Value: A Case of Indian FMCG Industry

Mandeep Mahendru * §

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Kalyan K De §

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§ Thapar University, Patiala, Punjab, India.

Does Advertising Expenditure Impact Firm Value: A Case of Indian FMCG Industry

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Abstract

This paper builds on the existing literature by studying the linkages between advertising expenditure, sales and profits in India. The paper takes a sample of 100 FMCG companies in India and studies their advertising and sales for the period ranging from 2001-02 to 2010-11.The study uses various tools including Mean, Standard Deviation, Coefficient of Variation, Kurtosis, Skewness, Correlation, Regression for getting insights into the data. Econometric analysis including Auto-correlation, Partial Auto-correlation, Augmented Dickey-Fuller test, Vector Auto Regression, Variance Decomposition Analysis, Johansen’s Cointegration and Vector Error Correction Model have been employed to find out the bivariate relationship between the variables under reference. The paper points towards the dependency of sales revenue and profit after tax on advertising expenses besides showing an obvious impact of sales revenue on profits.

References

16 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Mandeep Mahendru, Kalyan K De. 2014. "Does Advertising Expenditure Impact Firm Value: A Case of Indian FMCG Industry". Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 14 (GJMBR Volume 14 Issue C1).

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GJMBR Volume 14 Issue C1

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

advertising expenditure augmented dickey-fuller FMCG johansen’s cointegration variance decomposition analysis vector auto regression vector er

Classification

GJMBR-C Classification JEL Code: L25

L66

M37

Submission ReceivedDecember 11, 2013
Peer Review Double Blind
Handling Editor
Accepted January 5, 2014
Published January 15, 2014

Version of record

v1.2

Issue date

March 22, 2014

Language

English

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Article Matrices

Total Score: 102

Country: India

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Mandeep Mahendru, Kalyan K De (PhD/Dr. count: 0)

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