IDEAS home Printed from https://ideas.repec.org/a/wsi/ijfexx/v09y2022i03ns2424786322500128.html
   My bibliography  Save this article

Impact of advertising expenditure on firm performance: Evidence from listed companies of Pakistan

Author

Listed:
  • Hammad Hassan Mirza

    (Noon Business School, University of Sargodha, Pakistan)

  • Haroon Hussain

    (Noon Business School, University of Sargodha, Pakistan)

  • Warda Gull

    (Commerce Department, Govt. Graduate College for Women, Sargodha, Pakistan)

Abstract

The primary focus of this study is to investigate the impact of advertising expenditure on firm performance. In light of the existing literature, this study considers four proxies of firm performance i.e., Sales (SLS), Return on Assets (ROA), Market-to-Book Ratio (MBR) and Market Capitalization (MC). The sample data for the purpose of estimation consists of 100 listed companies selected randomly from Pakistan Stock Exchange (PSX) during 2005–2018. The results show that advertising spending has a significantly positive impact on firm’s performance. This is also true for lagged value of advertising, where the results show significant positive relationship of lagged advertising on firm performance. This study supports the signaling effect of advertising expenditure on performance of Pakistani firms.

Suggested Citation

  • Hammad Hassan Mirza & Haroon Hussain & Warda Gull, 2022. "Impact of advertising expenditure on firm performance: Evidence from listed companies of Pakistan," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-14, September.
    • Handle: RePEc:wsi:ijfexx:v:09:y:2022:i:03:n:s2424786322500128
    DOI: 10.1142/S2424786322500128
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2424786322500128
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2424786322500128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijfexx:v:09:y:2022:i:03:n:s2424786322500128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/worldscinet/ijfe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.