There is a growing consensus that senior management in either marketing or finance department should not evaluate the marketing performance only by marketing metrics, e.g. market share, sales growth, customer satisfaction, and etc., but focusing on maximizing shareholder value because they do not understand how or even whether those marketing metrics benefit shareholders. To follow this trend, this article investigates whether a firm¡¦s advertising expenditure, customer satisfaction, and research-and-development (R&D) expenditure have effects on total risk, systematic risk, and unsystematic risk of its common stock. After examining American and Taiwan stock market in the period from 2001 to 2005, the study finds that, conforming to the hypotheses in the study, advertising and customer satisfaction can significantly lower all a firm¡¦s total risk, systematic risk, and unsystematic risk of its common stock. The result of R&D, however, rejects the hypotheses in the study and even previous research and states that R&D would increase a firm¡¦s total risk, systematic risk, and unsystematic risk of its common stock in American stock market, yet increase systematic risk and decrease unsystematic risk in Taiwan stock market. The implication of this study may offer senior managers an alternative thinking of controlling business risk and resource allocation.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0619108-152859 |
| Date | 19 June 2008 |
| Creators | Lin, Chu-Bin |
| Contributors | Jen-Jsung Huang, Miao-Ling Chen, Ming-Chi Chen |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0619108-152859 |
| Rights | not_available, Copyright information available at source archive |
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