The study of the impact of e-commerce activities on firm value and the relationship between e-marketing and firm value

Abstract

Purpose-This study aims to explain the importance of the internet activities for companies' marketing strategies to add some value to the company. -E-marketing activites, which add value to a firm, should be taken into consideration during decision making process. Therefore, calculating the return on e-marketing activities investments is useful for both finance and marketing specialists. Methodology--In this study, the effects of e-commerce activities on firm value regarding tangible and intangible assets are examined. Financial statements are analyzed for determining tangible assets. E-marketing activities are taken into consideration as intangible assets and whether these activities affect firm value or not are analyzed. Accordingly, in this study, the firm value before and after launching emarketing activities as well as the change among the factors which add value to a firm are analyzed in detail. Findings--The relationship between firm value and the predetermined data of e-marketing activities is analyzed. The study first dwells on the factors which affect firm value and shareholder value, and then on whether there is any difference between the factors before and after launching e-marketing activities. Findings show that businesses have increased their firm value after they started e-commerce. Conclusion-As a conclusion, after the introduction of e-commerce operations, it became clear that firm value of the companies increased but starting e-commerce activities in early years doesn't bring the competitive advantage to the early adapters of e-commerce.