Explaining Variations in the Advertising & Promotional Costs/Sales Ratio: A Rejoinder

1997 ◽  
Vol 61 (1) ◽  
pp. 93-96 ◽  
Author(s):  
Kusum Ailawadi ◽  
Paul Farris ◽  
Mark Parry
Keyword(s):  
Market Share ◽  
Original Data ◽  
Data Preparation ◽  
Firm Level ◽  
Data Set ◽  
Market Strategy ◽  
Market Growth ◽  
Level Data ◽  
Preparation Errors ◽  
Advertising And Promotion

In 1994, the authors (see Ailawadi, Farris, and Parry 1994 ) reported the results of a failed attempt to validate the findings of Balasubramanian and Kumar's (1990) empirical analysis of the determinants of the firm-level ratio of advertising and promotion to sales (A&P/S). Balasubramanian and Kumar (1997) have now listed several concerns with the authors’ 1994 analysis—of which two data preparation errors are valid. However, these errors have no impact on the main thesis of the authors 1994 article—market share and market growth are not good predictors of A&P/S. The authors also have analyzed currently available COMPUSTAT data, and their findings once again invalidate Balasubramanian and Kumar's (1990) results. The authors can only reiterate their earlier conclusion—neither currently available COMPUSTAT data, Profit Impact of Market Strategy data, nor brand-level data show any significant effect of market share and market growth on A&P/S. The authors conclude that Balasubramanian and Kumar's (1990) findings are simply not valid, and there is no way to identify what exactly led to their unique results because they have not made available their original data set.

Explaining Variations in the Advertising & Promotional Costs/Sales Ratio: A Reanalysis

1997 ◽  
Vol 61 (1) ◽  
pp. 85-92 ◽  
Author(s):  
Siva K. Balasubramanian ◽  
V. Kumar
Keyword(s):  
Conceptual Framework ◽  
Market Share ◽  
Sharp Contrast ◽  
Compelling Evidence ◽  
Data Preparation ◽  
Market Strategy ◽  
Market Growth ◽  
Level Data ◽  
Preparation Errors

The authors focus on their 1990 model (B&K; see Balasubramanian and Kumar 1990 ), which indicates that market share, market growth, and their interaction are important predictors of the ratio of advertising and promotional costs to sales (A&P/S). In sharp contrast, Ailawadi, Farris, and Parry's (1994; AFP) subsequent replication attempt asserts that market share and market growth are not good predictors of A&P/S. The authors’ research documents serious problems in AFP's study, including erroneous model estimates caused by incorrect execution of the SAS TSCSREG procedure, pooling data for analysis in ways that cannot be justified statistically, data preparation errors, and inappropriate operationalizations of market share and market growth. With regard to analyses of Profit Impact of Market Strategy and brand-level data reported by AFP, the authors again find that AFP have analyzed data in inappropriate ways, given the conceptual framework of the B&K model. Because these problems provide compelling evidence to disregard AFP's results, the authors conclude that the criticisms advanced by AFP against the B&K model are not valid.

scholarly journals A microanalysis of trade finance: German bank entry and coffee exports in Brazil, 1880–1913

2019 ◽  
Vol 24 (2) ◽  
pp. 356-389
Author(s):  
Wilfried Kisling
Keyword(s):  
Historical Perspective ◽  
Credit Constraints ◽  
Original Data ◽  
Firm Level ◽  
Data Set ◽  
Trade Finance ◽  
German Bank ◽  
Level Data ◽  
Economic Studies ◽  
Bank Entry

Abstract The trade-finance nexus has enjoyed increasing interest in recent economic studies, but empirical evidence is scarce and studies from a historical perspective seem missing. This study analyses the effect of German bank entry on Brazilian coffee exports between 1880 and 1913 using firm-level data. I create an original data set on the yearly quantities of exported coffee and the credit received from the German Brasilianische Bank für Deutschland by export houses in Brazil. Using a difference-in-difference approach, I find that Brasilianische eased previously existing credit constraints, and that companies financed by Brasilianische exported significantly more than those that were not.

Anonymized Firm Data under Test: Evidence from a Replication Study

2005 ◽  
Vol 225 (5) ◽  
Author(s):  
Joachim Wagner
Keyword(s):  
Cross Sections ◽  
Statistical Significance ◽  
Original Data ◽  
Replication Study ◽  
Firm Level ◽  
Level Data ◽  
Practical Usefulness ◽  
Order Of Magnitude ◽  
Anonymized Data ◽  
Firm Data

SummaryThis paper contributes to the literature on the use of anonymized firm level data by reporting results from a replication study. To test for the practical usefulness of anonymized data I selected two of my published papers based on different cross sections of firm data. The data used there were anonymized by micro aggregation. I replicated the analyses reported in the papers with the anonymized data, and then compared the results to those produced with the original data. Frequently, the reported levels of statistical significance differ. Furthermore, statistically significant coefficients sometimes differ by order of magnitude. Therefore, at least for the moderate sample sizes used here micro-aggregated firm data should not be considered as a tool for empirical research.

The Optimal Diversification Strategy in Pharmaceutical Industry: Balance-centred or Hetero-centred?

2021 ◽  
pp. 097172182110056
Author(s):  
Keungoui Kim ◽  
Junseok Hwang ◽  
Sungdo Jung ◽  
Eungdo Kim
Keyword(s):  
Business Performance ◽  
Business Environment ◽  
Product Diversification ◽  
Diversification Strategy ◽  
Firm Level ◽  
Data Set ◽  
Pharmaceutical Firms ◽  
Level Data ◽  
Market Product ◽  
High Uncertainty

Due to high uncertainty of product development and business environment, firm-level diversification has been regarded as one of the most effective methods in pharmaceutical firms. In previous study, firm-level diversification was discussed by different value chains of market, product, and technology. However, in most cases, the diversification itself was adopted in a simple manner although its property contains different aspects and the results varies depending on the diversity property of selected index. In addition, the existing approach for measuring firm’s product/market diversification using sales information distinguished by standard industry classification cannot provide direct implication as different strategies are made for market and product diversification. Therefore, this study examines the effects of firm-level diversification on business and innovation performances in pharmaceutical firms by considering (1) three diversification types: market, product, and technology, (2) clear separation between market and product diversification, and (3) two diversification perspectives: balance-centred and hetero-centred. For empirical analysis, an integrated firm-level data set combining from Medtrack, Orange Book, Compustat and Total Patent database is used. From the result, in case of market diversification, less market heterogeneity causes significant influence on business performance. For product and technology, a concentrated and greater heterogeneity of product diversification are turned out to promote business performance, while the more intensive and heterogeneous technology diversification has been shown to improve innovation performance.

scholarly journals Returns to compensation in trucking: Does safety pay?

2019 ◽  
Vol 30 (2) ◽  
pp. 262-284 ◽  
Author(s):  
Michael R Faulkiner ◽  
Michael H Belzer
Keyword(s):  
Net Present Value ◽  
Retention Rates ◽  
Firm Level ◽  
Data Set ◽  
Motor Carrier ◽  
Level Data ◽  
Motor Carrier Industry ◽  
The Us ◽  
Before And After ◽  
Trucking Companies

Large truck crashes remain a significant problem in the truckload sector of the US motor carrier industry. Employing a unique firm-level data set from a large US truckload motor carrier, we identified two different driver groups hired during two distinct pay regimes. Before-and-after data on wages and safety outcomes created a natural experiment. Higher wages paid to experienced drivers in the new pay regime led to higher driver retention rates. Experienced drivers had lower average crash costs and were more productive during each tenure month. Experienced drivers had a much larger expected discounted net present value when compared with inexperienced drivers. As the previously inexperienced drivers gained additional experience, their crash probabilities and their value began to mirror those of the experienced drivers, demonstrating the value of greater tenure. This research supports ‘safe rates’ public policy because safety pays – for trucking companies, for cargo owners and for society. JEL Codes: J24, J28, J33

scholarly journals Political Risk Insurance: A New Firm-level Data Set

2019 ◽  
Vol 64 (5) ◽  
pp. 987-1006
Author(s):  
Vincent Arel-Bundock ◽  
Clint Peinhardt ◽  
Amy Pond
Keyword(s):  
Political Risk ◽  
Private Investment ◽  
Foreign Firms ◽  
Firm Level ◽  
Data Set ◽  
Insurance Contracts ◽  
Indirect Measures ◽  
Level Data ◽  
New Firm ◽  
Risk Insurance

When do governments impose costs on foreign firms? Many studies of foreign direct investment focus on incentives for government expropriation, but scholars are often forced to rely on indirect measures of expropriation to conduct empirical analyses. This article introduces a data set which includes information on over 5,000 political risk insurance contracts issued by the US Overseas Private Investment Corporation since 1961, and on all the claims filed by investors under these contracts. These detailed insurance data allow us to study the determinants of foreign investors’ losses from a variety of sources, including expropriation, inconvertibility, and violent conflict. To illustrate the benefits of these data for hypothesis testing, we adopt a comprehensive empirical approach and explore both shared and distinct causes across risk categories.

scholarly journals Family Commitments and Career Success: Earnings of Male and Female Managers

2005 ◽  
Vol 46 (1) ◽  
pp. 141-158 ◽  
Author(s):  
Kathy Cannings
Keyword(s):  
Division Of Labor ◽  
Middle Managers ◽  
Organizational Factors ◽  
Firm Level ◽  
Data Set ◽  
Household Division Of Labor ◽  
Level Data ◽  
Behavioral Variables ◽  
Dual Commitment ◽  
The Impact

The dual-career family, with its attendant pressures for dual commitment to the home and to the career, has become an increasingly important phenomenon in recent decades. This paper uses a firm-level data set to examine the impact of family commitments as well as cognitive, behavioral, and organizational factors on the earnings of 519 married middle managers in a large Canadian corporation. Alongside a number of behavioral variables as well as the functional division of managerial labor in the company, division of labor in the employee's household has a significant impact on managerial earnings. The inclusion of a variable reflecting the household division of labor in the managerial earnings function helps to explain a substantial proportion of the earnings disadvantage of women in this company that might otherwise simply be attributed to gender.

Using the eurostat-OECD definition of high-growth firms: a cautionary note

2015 ◽  
Vol 4 (1) ◽  
pp. 50-56 ◽  
Author(s):  
Sven-Olov Daunfeldt ◽  
Dan Johansson ◽  
Daniel Halvarsson
Keyword(s):  
Small Firms ◽  
High Growth ◽  
Growth Patterns ◽  
Firm Level ◽  
Data Set ◽  
Content Type ◽  
Level Data ◽  
Growth Firms ◽  
Definition Of ◽  
Practical Implications

Purpose – High-growth firms (HGFs) have attracted an increasing amount of attention from researchers and policymakers, and the Eurostat-Organisation for Economic Co-operation and Development (OECD) definition of HGFs has become increasingly popular. The paper aims to discuss this issue. Design/methodology/approach – The authors use a longitudinal firm-level data set to analyze the implications of using the Eurostat-OECD definition. Findings – The results indicate that this definition excluded almost 95 percent of surviving firms in Sweden, and about 40 percent of new private jobs during 2005-2008. Research limitations/implications – The proportion of small firms and their growth patterns differ across countries, and the authors therefore advise caution in using this definition in future studies. Practical implications – Policy based on the Eurostat-OECD definition of HGFs might be misleading or even counterproductive. Originality/value – No previous studies have analyzed the implications of using the Eurostat-OECD definition of HGFs.

Talking While Fighting: Understanding the Role of Wartime Negotiation

2020 ◽  
Vol 74 (3) ◽  
pp. 610-632 ◽  
Author(s):  
Eric Min
Keyword(s):  
World War Ii ◽  
Original Data ◽  
Mechanical Activity ◽  
Complex Nature ◽  
Essential Dimension ◽  
World War ◽  
War Termination ◽  
Data Set ◽  
Level Data

AbstractContemporary studies of conflict have adopted approaches that minimize the importance of negotiation during war or treat it as a constant and mechanical activity. This is strongly related to the lack of systematic data that track and illustrate the complex nature of wartime diplomacy. I address these issues by creating and exploring a new daily-level data set of negotiations in all interstate wars from 1816 to the present. I find strong indications that post-1945 wars feature more frequent negotiations and that these negotiations are far less predictive of war termination. Evidence suggests that increased international pressures for peace and stability after World War II, especially emanating from nuclear weapons and international alliances, account for this trend. These original data and insights establish a dynamic research agenda that enables a more policy-relevant study of conflict management, highlights a historical angle to conflict resolution, and speaks to the utility of viewing diplomacy as an essential dimension to understanding war.

scholarly journals COMPLEMENTARITIES OF R&D STRATEGIES ON INNOVATION PERFORMANCE: EVIDENCE FROM TAIWANESE MANUFACTURING FIRMS

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S134-S156 ◽  
Author(s):  
Eric S. Lin ◽  
Yi-Chi Hsiao ◽  
Hui-lin Lin
Keyword(s):  
Developed Countries ◽  
Manufacturing Firms ◽  
Empirical Models ◽  
Combined Method ◽  
Firm Level ◽  
Data Set ◽  
Step Procedure ◽  
Level Data ◽  
Innovation Output ◽  
Consistent Estimators

This paper aims to empirically test the R&D complementarities among three alternative R&D strategies, namely, internal R&D, external R&D and cooperative R&D, under different measures of innovation output. Using a firm-level data set based on the Taiwanese innovation survey (in accordance with CIS 3) conducted in 2003, we are able to compare the R&D activities in this newly-industrialized country with other developed countries. Additionally, we apply a two-step procedure to reduce the endogeneity problem caused by the firms’ choices of strategies to obtain consistent estimators, which can be regarded as a combined method of adoption and productivity approaches. We show that the results of the estimation for R&D complementarities may be biased upwards or downwards if we do not include selection equations in the empirical models, thereby giving rise to endogeneity problems. Our empirical results generally support the existence of R&D complementarities, while the strength of complementary effects may vary across different measures of innovation output. Moreover, our finding suggests that the complementary relationship between external and cooperative R&D is fairly robust to various model specifications.

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