(An) empirical study on the impact of advertising expenditure, R&D expenditure and R&D innovation on financial performance and marketing performance of Chinese A-share listed companies|RISS 상세보기

다국어 초록 (Multilingual Abstract)

Abstract
An empirical study on the impact of advertising expenditure, R&D expenditure and R&D innovation on financial performance and marketing performance of Chinese A-share listed companies

Li Di
Supervised by Prof. Yan Jinzhe
Dept. of Global Business &
Entrepreneurship
Graduate School of
Gachon University

Advertising is a common non-price competition method for enterprises, which is not only an effective way to improve corporate financial performance and marketing performance, but also important means to establish brand image. The fundamental task of enterprise transformation and upgrading is to strengthen technological innovation to shape famous enterprise brands. The way of enterprise upgrading can be through technological innovation and product R&D innovation to achieve value increase, and can also be through marketing creative advertising to form brand effect to achieve value increasement.
How to effectively carry out the financial performance, marketing performance evaluation work, to maximize the improvement of enterprise efficiency is an important issue facing enterprise managers at present. However, due to the complexity and difficulty in the quantification of performance evaluation, China still lacks a complete set of systematic and feasible performance evaluation processes. Therefore, this paper has certain theoretical and practical significance.
Through reviewing related literature at home and abroad and analyzing differentiation strategy theory, system theory, principal-agent theory, and the theory of enterprise value, on the basis of relevant theories, to look for in the professional database iFinD panel data. To deal with sample data, get rid of the real estate enterprises, financial enterprises, technological innovation enterprise, ST enterprise and to deal with the tail, taking 444 Chinese A-share listed companies from 2011 to 2020 as samples, this paper conducts descriptive and correlation statistical analysis on 11 related indicators.
Based on controlling the field, total assets, total employees, the correlation of advertising expenditure, R&D expenditure, R&D innovation, and operator characteristics with current and future financial performance and marketing performance is assumed. Furthermore, Stata statistical analysis software was used to carry out the Hausmann test and select the fixed effect estimation. Then, according to the results of fixed effect estimation, the correlation of advertising expenditure, R&D expenditure, R&D innovation and operator characteristics with financial performance and marketing performance are analyzed respectively. Then, the robustness test was carried out to draw the conclusion.
The research finds that the financial performance-related conclusions: advertising expenditure and R&D innovation are significantly positively correlated with current and future financial performance. R&D innovation has a greater positive correlation with corporate financial performance than advertising expenditure. As for the impact of advertising cost on financial performance, the total annual compensation of management has a positive moderating effect. As for the influence of advertising expenditure on financial performance, the total annual compensation of the top three executives has a negative moderating effect. As for the impact of R&D expenditure on financial performance, the total annual compensation of management has a positive moderating effect. As for the impact of R&D expenditure on financial performance, the total annual compensation of the top three executives has a positive moderating effect.
Furthermore, the conclusion about marketing performance can be drawn: Advertising expenditure and R&D expenditure are significantly positively correlated with current and future marketing performance. R&D expenditure has a greater positive correlation with marketing performance than advertising expenditure. As for the influence of advertising expenditure on marketing performance, the total annual compensation of management has a positive moderating effect. As for the influence of advertising expenditure on marketing performance, the total annual compensation of the top three executives has a reverse moderating effect. As for the effect of R&D expenditure on marketing performance, the total annual compensation of management has a reverse moderating effect. As for the effect of R&D expenditure on marketing performance, the total annual compensation of the top three executives has a positive moderating effect.
The innovation of this paper lies in what’s listed below: Firstly, the advertising expenditure is separated from the sales expenditure. Secondly, the influence of advertising and innovation on enterprises is analyzed. Thirdly, innovatively selecting indicators as adjusting variables and control variables. Finally, according to the research conclusion, the theoretical and practical enlightenment can be drawn, the limitations of this paper research can be summarized, and the future development direction can be explored.

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목차 (Table of Contents)

Contents
Ⅰ. Introduction 1
1.1 Research question 1
1.2 Research purpose 4
1.3 Research significance 5

Contents
Ⅰ. Introduction 1
1.1 Research question 1
1.2 Research purpose 4
1.3 Research significance 5
1.3.1 Theoretical significance 5
1.3.2 Practical significance 8
1.4 Research methods 10
Ⅱ. Theoretical basis and literature review 12
2.1 Concept definition 12
2.1.1 Advertising 12
2.1.2 R&D expenditure 14
2.1.3 Operator characteristics 16
2.1.4 Enterprise value 18
2.2 Theoretical basis 18
2.2.1 Differentiation strategy theory 18
2.2.2 System theory 20
2.2.3 Principal-agent theory 22
2.2.4 Theory of enterprise value 23
2.3 Foreign literature review 23
2.3.1 Research on the correlation between advertising expenditure and enterprise economic performance 23
2.3.2 Research on the correlation between R&D expenditure and enterprise economic performance 25
2.3.3 Research on the correlation between operator equity incentive and enterprise economic performance 26
2.4 Domestic literature review 28
2.4.1 Research on the correlation between advertising expenditure and enterprise economic performance 28
2.4.2 Research on the correlation between R&D expenditure and enterprise economic performance 31
2.4.3 Research on the impact of the interaction between advertising expenditure and R&D expenditure on enterprise economic performance 32
2.4.4 Research on the correlation between operator equity incentive and enterprise economic performance 33
2.5 Summary of literature review 35
Ⅲ. Research hypothesis and model 37
3.1 Research hypothesis 37
3.2 Research model and formula representation 42
Ⅳ. Descriptive statistical analysis of related indicators of advertising and R&D expenditure of Chinese A-share listed companies 46
4.1 Index selection and comprehensive descriptive statistical analysis 46
4.1.1 Index selection 46
4.1.1.1 Dependent variable: 46
4.1.1.2 Independent variables: 48
4.1.1.3 Adjusting variables: 49
4.1.1.4 Control variables: 50
4.1.2 Comprehensive descriptive statistical analysis of indicators 50
4.1.3 Correlation analysis of indicators 54
4.2 Analysis of financial performance indicators 55
4.2.1 Statistical analysis of enterprise operating profit growth trend 55
4.2.2 Statistical analysis of enterprise operating profit scale in 2020 56
4.2.3 Statistical analysis of the top 10 enterprises' operating profits in 2020 57
4.3 Analysis of marketing performance indicators 58
4.3.1 Statistical analysis of enterprise business revenue growth trend 58
4.3.2 Statistical analysis of enterprise operating revenue scale in 2020 60
4.3.3 Statistical analysis of the top 10 enterprises' operating revenue in 2020 61
4.4 Analysis of enterprise value indicators 62
4.4.1 Statistical analysis of enterprise value growth trend 62
4.4.2 Statistical analysis of enterprise value scale in 2020 63
4.4.3 Statistical analysis of the top 10 enterprises by value in 2020 64
4.5 Analysis of the company's advertising expenditure indicators 65
4.5.1 Statistical analysis of the growth trend of enterprise advertising expenditure 65
4.5.2 Statistical analysis of enterprise advertising expenditure scale in 2020 67
4.5.3 Statistical analysis of the top 10 enterprise advertising expenditure in 2020 68
4.6 Index analysis of enterprise R&D expenditure 69
4.6.1 Statistical analysis of enterprise R&D expenditure growth trend 69
4.6.2 Statistical analysis of enterprise R&D expenditure scale in 2020 71
4.6.3 Statistical analysis of the top 10 R&D expenditure of enterprises in 2020 72
4.7 Analysis of characteristic indexes of enterprise managers 73
4.7.1 Analysis of annual total compensation index of enterprise management 73
4.7.1.1 Statistical analysis of the growth trend of annual total compensation of corporate management 73
4.7.1.2 Statistical analysis of the top 10 annual total compensation of corporate management in 2020 75
4.7.2 Index analysis of the annual total compensation of the top three executives 76
4.7.2.1 Statistical analysis of the annual total compensation growth trend of the top three executives 76
4.7.2.2 Statistical analysis of the top ten annual total compensation of the top three executives in 2020 78
4.8 Index analysis of total number of employees 79
4.8.1 Statistical analysis of the growth trend of total number of employees 79
4.8.2 Statistical analysis of total number of employees in 2020 80
4.8.3 Statistical analysis of top 10 Employees in 2020 81
4.9 Analysis of total enterprise assets index 82
4.9.1 Statistical analysis of the growth trend of total enterprise assets 82
4.9.2 Statistical analysis of total enterprise assets scale in 2020 83
4.9.3 Statistical analysis of the top 10 total assets of enterprises in 2020 84
Ⅴ. Data sources and empirical analysis 85
5.1 Data sources 85
5.2 Empirical analysis 86
5.2.1 Hausmann test 86
5.2.2 Fixed effect estimation of financial performance 87
5.2.2.1 Financial performance statistical analysis Model1 90
5.2.2.2 Financial performance statistical analysis Model2 90
5.2.2.3 Financial performance statistical analysis Model3 91
5.2.2.4 Financial performance statistical analysis Model4 92
5.2.2.5 Financial performance statistical analysis Model5 93
5.2.3 Fixed effect estimation of marketing performance 94
5.2.3.1 Marketing performance statistical analysis Model1 97
5.2.3.2 Marketing performance statistical analysis Model2 97
5.2.3.3 Marketing performance statistical analysis Model3 98
5.2.3.4 Marketing performance statistical analysis Model4 99
5.2.3.5 Marketing performance statistical analysis Model5 100
5.2.4 Fixed effect estimation of operator characteristics 101
5.2.4.1 Statistical analysis of the moderating effect of operator characteristics on financial performance 101
5.2.4.2 Statistical analysis of the moderating effect of operator characteristics on marketing performance 103
5.2.5 Robustness test 105
5.2.5.1 Robustness test Model1 107
5.2.5.2 Robustness test Model2 108
5.2.5.3 Robustness test Model3 109
5.2.5.4 Robustness test Model4 110
5.2.5.5 Robustness test Model5 110
Ⅵ. Conclusion and enlightenment 112
6.1 Conclusions and innovations 112
6.1.1 Conclusion 112
6.1.2 Innovations 114
6.2 Theoretical and practical enlightenment 114
6.2.1 Theoretical enlightenment 115
6.2.2 Practical enlightenment 115
6.2.2.1 Scientifically quantify advertising investment 116
6.2.2.2 Continue to increase investment in research and development 119
6.2.2.3 Balance advertising investment with R&D investment 122
6.2.2.4 Moderately increase executive compensation 123
6.3 Limitations and future research directions 125
6.3.1 Subdivide the field to improve the control variables 125
6.3.2 Give consideration to the development of small and medium-sized enterprises 125
6.3.3 Improve data samples 126
Reference 127

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