A Research on The Effects of Marketing Spending on Firm Value

Abstract

The purpose of this study is to investigate the influence of “Marketing Expenses” on firm value. The study uses data belonging to 120 firms, which are traded in Borsa Istanbul (BIST) in the period of 2009-2012. The independent variables used in the study consist of “Return on Assets” (ROA) and “Return on Equity” (ROE), which are accounting based performance indicators. The other is "Tobin's q" ratio which is market-based ratio. The regression and correlation analysis have been employed in empirical analyzes. The result of the conducted analysis showed that the increase in marketing expenses influences value of the firms in a positive way. As a result, organizations should accept the marketing expenses not only as a spending but also an investment as a value added to business.