Consequences of Marketing Asset Accountability—A Natural Experiment

Guenther, Peter ORCID: 0000-0002-1240-9845, Guenther, Miriam ORCID: 0000-0001-6033-8466, Lukas, Bryan A and Homburg, Christian (2024) Consequences of Marketing Asset Accountability—A Natural Experiment. [Preprint]

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Abstract

<jats:p> Marketing scholars have extensively studied marketing's effect on firm value and have developed metrics and dashboards to help establish marketing accountability. However, empirical evidence of marketing accountability's specific outcomes is scarce and mainly derived from surveys. It also lacks consideration of outcomes beyond the marketing function's standing in the firm, thus overlooking possible downsides and outcomes with regard to external stakeholders such as investors. Using a natural experiment—Australia's change from a nonrestrictive to a restrictive accounting regime—this study investigates how accountability for the financial value of marketing assets (marketing asset accountability) affects a firm's marketing management focus on short-term vis-à-vis long-term marketing efficiency, its cost of capital, and the degree to which its stock price reflects actual future performance (i.e., stock price informativeness). The results show that marketing asset accountability improves long-term marketing efficiency, reduces cost of equity, and improves stock price informativeness, but does not consistently affect short-term marketing efficiency and cost of debt. Moreover, although marketing-intensive firms are commonly assumed to benefit most from marketing asset accountability, this is not the case. These results have implications for researchers, managers, and public policy decision makers. </jats:p>

Item Type:	Preprint
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	13 Mar 2024 09:50
Last Modified:	24 Apr 2024 08:40
DOI:	10.1177/00222429241236142
Related URLs:	Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3179373