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Impact of Advertising Intensity on Market Risk of a Firm: A Study on the Indian Consumer Goods Sector

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  • Shalini Nath Tripathi
  • Dheeraj Misra
  • Masood Siddiqui

Abstract

The objective of this article is to assess the impact of advertising intensity of a firm on its market risk or beta in the Indian consumer goods sector. Our sample companies are part of four sectoral indices of Bombay Stock Exchange, namely, fast-moving consumer goods (FMCG), consumer durable, auto and telecom indices. Pooled regression analysis is deployed to assess the impact of advertising intensity on market risk. The results reveal that advertising intensity is a significant determinant of market risk, and that beta or market risk of a firm varies inversely with its advertising intensity with reference to the Indian consumer goods sector.

Suggested Citation

  • Shalini Nath Tripathi & Dheeraj Misra & Masood Siddiqui, 2020. "Impact of Advertising Intensity on Market Risk of a Firm: A Study on the Indian Consumer Goods Sector," Global Business Review, International Management Institute, vol. 21(6), pages 1376-1386, December.
    • Handle: RePEc:sae:globus:v:21:y:2020:i:6:p:1376-1386
    DOI: 10.1177/0972150919856998
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    References listed on IDEAS

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