New product preannouncements, advertising investments, and stock returns

Synergy between R&D and advertising on shareholder value: Does firm size matter?

“…Many studies, for example, Chang (), Baker and Sinkula (), Naik and Raman (), Murthy and Mantrala (), Ramaswami et al (), and Chen et al (), have used the interactions of variables as a measurement to observe the synergy effects between components of interest. For example, Chang (, page 33) noted that “… in order to understand the influence of technology and marketing capabilities upon the firm's profitability, the author uses an OLS regression model that includes the interaction between the two capabilities for measuring the synergy effect.” Based on their studies, we investigate the synergy effect between advertising and R&D on firm value using the interactions of R&D and advertising intensity.…”

“…The R&D investments of a firm are widely treated as the main engine of growth, which can benefit the firm by creating competitive advantages and distinguishing itself from competitors (Chan et al, 2001). The advertising investments of firms are positioned to help mitigate information asymmetry, facilitate promotion of their products, processes, and services generated by R&D, change consumer mind-set, accelerate the velocity of consumer responses, induce faster market penetration, and increase their sales revenue and market share (Chen et al, 2014;Luo & de Jong, 2012;Srivastava et al, 1998;Singh et al, 2005;Wang et al, 2009). Moreover, a majority of the empirical research in marketing and finance investigating the relationship between R&D and shareholder value as well as between advertising and shareholder value have documented that marketing-related investments lead to larger brand value (Peterson & Jeong, 2010), lower return risks (Chen et al, 2014;McAlister et al, 2007;), higher stock returns and future cash flows (Srinivasan et al, 2009), persistent and increased firm profitability (Mizik & Jacobson, 2003), and therefore improved shareholder value (Chauvin & Hirschey, 1993;Peterson & Jeong, 2010;Srinivasan et al, 2009).…”

An Announcement Effect of Korea Best Brands by Interbrand on Korea Equity Market

“…The abnormal return by the event is assessed as the difference between actual stock return and its index returns for identical period under theoretical model. Previous researches use these methods to evaluate impacts of special events like e-commerce announcements [13], new product announcements [14], [15],brand valuation reports announcements [16]and earnings announcement [17].…”

Exploring the use of signals in the venture emergence of new technology-based firms

“…It has also been proposed in prior research, that the value of marketing activities is related to the information asymmetry between the producer and the buyer [38], the more innovative the product and the less known its producer, the higher will be the information asymmetry. Following this informational perspective [39], we would assume that new ventures, with no past transactions in the market, no track of successful product development, offering untested novel technology products might have to rely on symbolic elements to convince customers on the benefits of their innovation and get them to commit to their products.…”