Market Share Dispersion Among Leading Firms as a Determinant of Advertising Intensity

Willis, Michael; Rogers, Richard T.

doi:10.1023/a:1007704811420

Cited by 22 publications

(3 citation statements)

References 23 publications

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“…Second, the GAO ͑2003, 2008͒ studies only consider the impact of consolidation based on overall market concentration and do not examine whether consolidation impacts how equally divided market shares are among leading firms pre-and post-consolidation. We examine market equality based on evidence from industrial organization research that suggests equality of market shares among the largest suppliers, in addition to market concentration, can impact competition ͑e.g., Willis and Rogers 1998;Schmalensee 1989͒. In addition, there is indirect evidence in the auditing literature that unequal market shares can impact competition.…”

Section: Introductionmentioning

confidence: 99%

The Impact of the Big 4 Consolidation on Audit Market Share Equality

Dunn¹,

Kohlbeck²,

Mayhew³

2011

AUDITING: A Journal of Practice &Amp; Theory

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We investigate the Big 5 to Big 4 consolidation and its impact on audit market share equality. We extend the GAO's ͑2008͒ study on audit firm industry market concentration to examine whether the remaining Big N firms' market shares are more equal after the Big 4 consolidation. We also extend the GAO study to examine audit market shares at the city and city-industry levels. We find that while overall market concentration increases, the Big 4 have more equal market shares than the Big 5 had prior to the consolidation at all levels of analysis. The increase in market share equality may explain why there has been inconsistent evidence of an association between market concentration and competition after the consolidation ͑Feldman 2006; GAO 2008͒. However, we find that the largest four clients in each market we examine are more likely to share the same auditor after consolidation, which suggests the largest clients face constrained choices.

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Section: Introductionmentioning

confidence: 99%

The Impact of the Big 4 Consolidation on Audit Market Share Equality

Dunn¹,

Kohlbeck²,

Mayhew³

2011

AUDITING: A Journal of Practice &Amp; Theory

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“…Some studies argue that CSR activities positively affect brand equity and advertising intensity [41][42][43], implying that there is a concern about reverse causation under which firms with high CSR activities are more likely to spend advertising expenditures. Following Willis and Rogers [44], the authors regress the first stage model as: ADV = a 0 + a 1 PCM + a 2 HHI + a 3 SIZE + a 4 GROW + e…”

Section: Resultsmentioning

confidence: 99%

Marketing Investments and Corporate Social Responsibility

Kim

Nam

2021

Sustainability

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Although the short-term effects of marketing efforts that promote immediate consumer responses have been extensively investigated, the long-term impacts of marketing activities have received little attention. Marketing effects can be carried over time as consumers experience an emotional attachment to products and build trust and affection. In addition, a firm’s advertising spending not only improves customer awareness of the firm’s products and services but also serves to promote other company information, such as the firm’s corporate social responsibility (CSR), a long-term strategic commitment to improving the welfare of customers and society. This paper focuses on the long-term effects of marketing investments by examining the relation between advertising expenditures and a firm’s commitment to CSR, finding that firms with a higher advertising expenditure are more likely to have a higher CSR performance. The findings of this study demonstrate that marketing investments are related to a firm’s long-term sustainable activities. Additionally, the finding may indicate that a firm’s CSR initiatives are influenced by the extent to which the firm commits to advertising that promotes customer awareness of the firm’s products and services.

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“…These activities, however, do not per se systematically affect the profitability, as the positive and synergic effects of mergers and acquisitions are not guaranteed (Cascorbi, 2003). Market size (S) was used as an instrument for advertising intensity, following the reasoning of Willis and Rogers (1998) that it could determine advertising intensity. The variable was not found to be statistically related to market profitability in our sample.…”

Section: Estimation Methodsmentioning

confidence: 99%

Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

Kastratović¹,

Lončar²,

Milošević³

2019

Zb. rad. Ekon. fak. Rij.

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The impact of market concentration on profitability is a controversial question in industrial organization without a clear answer. The aim of the research is to investigate this prospective impact in the context of Serbian manufacturing industry. The main hypothesis of the research is that the increase in market concentration increases the profitability in the markets, due to the collusion of the dominant companies. We test this hypothesis by defining, estimating and testing the model describing the impact of structural and other control variables on market profitability by using secondary panel data for 122 markets, observed in 2015 and 2017. We obtained the data from 30 037 financial reports of the manufacturing industry companies. The model was estimated by using an error component two stage least squares estimator (EC2SLS). The results indicate a statistically significant positive impact of market concentration on profitability, empirically supporting the traditional market power hypothesis.

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Market Share Dispersion Among Leading Firms as a Determinant of Advertising Intensity

Cited by 22 publications

References 23 publications

The Impact of the Big 4 Consolidation on Audit Market Share Equality

The Impact of the Big 4 Consolidation on Audit Market Share Equality

Marketing Investments and Corporate Social Responsibility

Market concentration and profitability: the empirical evidence from Serbian manufacturing industry

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