The Misuse of Accounting-Based Approximations of Tobin’s q in a World of Market-Based Assets

Published Online:https://doi.org/10.1287/mksc.2018.1093

References

  • Aksoy L, Cooil B, Groening C, Keiningham TL, Yalçın A (2008) The long-term stock market valuation of customer satisfaction. J. Marketing 72(4):105–122.CrossrefGoogle Scholar
  • Ambler T, Roberts JH (2008) Assessing marketing performance: Don’t settle for a silver metric. J. Marketing Management 24(7):733–750.CrossrefGoogle Scholar
  • Anderson EW, Fornell C, Mazvancheryl SK (2004) Customer satisfaction and shareholder value. J. Marketing 68(4):172–185.CrossrefGoogle Scholar
  • Bendle NT, Wang X(S) (2017) Marketing accounts. Internat. J. Res. Marketing 43(3):604–621.CrossrefGoogle Scholar
  • Bendle NT, Farris PW, Pfeifer PE, Reibstein DJ (2015) Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, 3rd ed. (Pearson FT Press, Upper Saddle River, NJ).Google Scholar
  • Berger PG, Ofek E (1995) Diversification’s effect on firm value. J. Financial Econom. 37(1):39–65.CrossrefGoogle Scholar
  • Bharadwaj SG, Tuli KR, Bonfrer A (2011) The impact of brand quality on shareholder wealth. J. Marketing 75(5):88–104.CrossrefGoogle Scholar
  • Chung KH, Pruitt SW (1994) A simple approximation of Tobin’s q. Financial Management 23(3):70–74.CrossrefGoogle Scholar
  • Dotzel T, Shankar V, Berry LL (2013) Service innovativeness and firm value. J. Marketing Res. 50(2):259–276.CrossrefGoogle Scholar
  • Dybvig PH, Warachka M (2010) Tobin’s Q does not measure performance: Theory, empirics, and alternative measures. Working paper, Washington University in Saint Louis.Google Scholar
  • Edeling A, Fischer M (2016) Marketing’s impact on firm value: Generalizations from a meta-analysis. J. Marketing Res. 53(4):515–534.CrossrefGoogle Scholar
  • Erickson GS, Rothberg HN (2009) Intellectual capital in business-to-business markets. Indust. Marketing Management 38(2):159–165.CrossrefGoogle Scholar
  • Fang E, Palmatier RW, Steenkamp JBE (2008) Effect of service transition strategies on firm value. J. Marketing 72(5):1–14.CrossrefGoogle Scholar
  • Fischer M (2016) Brand valuation in accordance with GAAP and legal requirements. Stewart DW, Gugel CT, eds. Accountable Marketing: Linking Marketing Actions to Financial Performance (Routledge, New York), 182–200.Google Scholar
  • Fornell C, Mithas S, Morgeson FV, Krishnan MS (2006) Customer satisfaction and stock prices: High returns, low risk. J. Marketing 70(1):3–14.CrossrefGoogle Scholar
  • Germann F, Ebbes P, Grewal R (2015) The chief marketing officer matters! J. Marketing 79(3):1–22.CrossrefGoogle Scholar
  • Giroud X, Mueller HM (2011) Corporate governance, product market competition, and equity prices. J. Finance 66(2):563–600.CrossrefGoogle Scholar
  • Goldfarb A, Lu Q, Moorthy S (2009) Measuring brand value in an equilibrium framework. Marketing Sci. 28(1):69–86.LinkGoogle Scholar
  • Grewal R, Chandrashekaran M, Citrin AV (2010) Customer satisfaction heterogeneity and shareholder value. J. Marketing Res. 47(4):612–626.CrossrefGoogle Scholar
  • Groening C, Mittal V, Zhang Y (2016) Cross-validation of customer and employee signals and firm valuation. J. Marketing Res. 53(1):61–76.CrossrefGoogle Scholar
  • Gruca TS, Rego LL (2005) Customer satisfaction, cash flow, and shareholder value. J. Marketing 69(3):1–18.CrossrefGoogle Scholar
  • Hirsch BT, Seaks TG (1993) Functional form in regression models of Tobin’s q. Rev. Econom. Statist. 75(2):381–385.CrossrefGoogle Scholar
  • Hsu L, Fournier S, Srinivasan S (2016) Brand architecture strategy and firm value: How leveraging, separating, and distancing the corporate brand affects risk and returns. J. Acad. Marketing Sci. 44(2):261–280.CrossrefGoogle Scholar
  • Hsu LTJ, Jang SS (2008) Advertising expenditure, intangible value and risk: A study of restaurant companies. Internat. J. Hospitality Management 27(2):259–267.CrossrefGoogle Scholar
  • Ittner CD, Larcker D, Taylor D (2009) Commentary—The stock market’s pricing of customer satisfaction. Marketing Sci. 28(5):826–835.LinkGoogle Scholar
  • Jacobson R, Mizik N (2009) The financial markets and customer satisfaction: Reexamining possible financial market mispricing of customer satisfaction. Marketing Sci. 28(5):810–819.LinkGoogle Scholar
  • Joshi A, Hanssens DM (2010) The direct and indirect effects of advertising spending on firm value. J. Marketing 74(1):20–33.CrossrefGoogle Scholar
  • Kang C, Germann F, Grewal R (2016) Washing away your sins? Corporate social responsibility, corporate social irresponsibility, and firm performance. J. Marketing 80(2):59–79.CrossrefGoogle Scholar
  • Kaplan SN, Zingales L (1997) Do investment-cash flow sensitivities provide useful measures of financing constraints? Quart. J. Econom. 112(1):169–215.CrossrefGoogle Scholar
  • Kashmiri S, Mahajan V (2014) Beating the recession blues: Exploring the link between family ownership, strategic marketing behavior and firm performance during recessions. Internat. J. Res. Marketing 31(1):78–93.CrossrefGoogle Scholar
  • Katsikeas CS, Morgan NA, Leonidou LC, Hult GTM (2016) Assessing performance outcomes in marketing. J. Marketing 80(2):1–20.CrossrefGoogle Scholar
  • Klock M, Megna P (2000) Measuring and valuing intangible capital in the wireless communications industry. Quart. Rev. Econom. Finance 40(4):519–532.CrossrefGoogle Scholar
  • Koh Y, Lee S, Boo S (2009) Impact of brand recognition and brand reputation on firm performance: U.S.-based multinational restaurant companies’ perspective. Internat. J. Hospitality Management 28(4):620–630.CrossrefGoogle Scholar
  • Krasnikov A, Mishra S, Orozco D (2009) Evaluating the financial impact of branding using trademarks: A framework and empirical evidence. J. Marketing 73(6):154–166.CrossrefGoogle Scholar
  • Larivière B, Keiningham TL, Aksoy L, Yalçin A, Morgeson FV, Mithas S (2016) Modeling heterogeneity in the satisfaction, loyalty intention and shareholder value linkage: A cross-industry analysis at the customer and firm level. J. Marketing Res. 53(1):91–109.CrossrefGoogle Scholar
  • Lee RP, Chen Q (2009) The immediate impact of new product introductions on stock price: The role of firm resources and size. J. Product Innovation Management 26(1):97–107.CrossrefGoogle Scholar
  • Lee RP, Grewal R (2004) Strategic responses to new technologies and their impact on firm performance. J. Marketing 68(4):157–171.CrossrefGoogle Scholar
  • Lehmann DR (2004) Metrics for making marketing matter. J. Marketing 68(4):73–75.CrossrefGoogle Scholar
  • Lev B (2001) Intangibles: Management, Measurement, and Reporting (Brookings Institution, Washington, DC).Google Scholar
  • Lindenberg EB, Ross SA (1981) Tobin’s q ratio and industrial organization. J. Bus. 54(1):1–32.CrossrefGoogle Scholar
  • Luo X, Bhattacharya CB (2006) Corporate social responsibility, customer satisfaction, and market value. J. Marketing 70(4):1–18.CrossrefGoogle Scholar
  • Luo X, Donthu N (2006) Marketing’s credibility: A longitudinal investigation of marketing communication productivity and shareholder value. J. Marketing 70(4):70–91.CrossrefGoogle Scholar
  • Luo X, Homburg C (2007) Neglected outcomes of customer satisfaction. J. Marketing 71(2):133–149.CrossrefGoogle Scholar
  • Luo X, Homburg C (2008) Satisfaction, complaint, and the stock value gap. J. Marketing 72(4):29–43.CrossrefGoogle Scholar
  • Luo X, Homburg C, Wieseke J (2010) Customer satisfaction, analyst stock recommendations, and firm value. J. Marketing Res. 47(6):1041–1058.CrossrefGoogle Scholar
  • Lusch RF, Harvey MG (1994) The case for an off-balance-sheet controller. Sloan Management Rev. 35(2):101–105.Google Scholar
  • Malshe A, Agarwal MK (2015) From finance to marketing: The impact of financial leverage on customer satisfaction. J. Marketing 79(5):21–38.CrossrefGoogle Scholar
  • McAlister L, Srinivasan R, Jindal N, Cannella AA (2016) Advertising effectiveness: The moderating effect of firm strategy. J. Marketing Res. 53(2):207–224.CrossrefGoogle Scholar
  • McFarland H (1988) Evaluating q as an alternative to the rate of return in measuring profitability. Rev. Econom. Statist. 70(4):614–622.CrossrefGoogle Scholar
  • Mintz O, Currim IS (2013) What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing-mix activities? J. Marketing 77(2):17–40.CrossrefGoogle Scholar
  • Mittal V, Anderson EW, Sayrak A, Tadikamalla P (2005) Dual emphasis and the long-term financial impact of customer satisfaction. Marketing Sci. 24(4):544–555.LinkGoogle Scholar
  • Mizik N, Jacobson R (2009a) Financial markets research in marketing. J. Marketing Res. 46(3):320–324.Google Scholar
  • Mizik N, Jacobson R (2009b) Valuing branded businesses. J. Marketing 73(6):137–153.CrossrefGoogle Scholar
  • Mizik N, Nissim D (2011) Accounting for marketing activities: Implications for marketing research and practice. Working paper, Marketing Science Institue, Cambridge, MA.Google Scholar
  • Montgomery CA, Wernerfelt B (1988) Diversification, Ricardian rents, and Tobin’s q. RAND J. Econom. 19(4):623–632.CrossrefGoogle Scholar
  • Morgan NA, Rego LL (2006) The value of different customer satisfaction and loyalty metrics in predicting business performance. Marketing Sci. 25(5):426–439.LinkGoogle Scholar
  • Morgan NA, Rego LL (2009) Brand portfolio strategy and firm performance. J. Marketing 73(1):59–74.CrossrefGoogle Scholar
  • Nath P, Mahajan V (2008) Chief marketing officers: A study of their presence in firms’ top management teams. J. Marketing 72(5):65–81.CrossrefGoogle Scholar
  • Osinga EC, Leeflang PS, Srinivasan S, Wieringa JE (2011) Why do firms invest in consumer advertising with limited sales response? A shareholder perspective. J. Marketing 75(1):109–124.CrossrefGoogle Scholar
  • Parcharidis EG, Varsakelis NC (2010) R&D and Tobin’s q in an emerging financial market: The case of the Athens stock exchange. Managerial Decision Econom. 31(5):353–361.Google Scholar
  • Park CW, Eisingerich AB, Pol G, Park JW (2013) The role of brand logos in firm performance. J. Bus. Res. 66(2):180–187.CrossrefGoogle Scholar
  • Raithel S, Sarstedt M, Scharf S, Schwaiger M (2012) On the value relevance of customer satisfaction. Multiple drivers and multiple markets. J. Acad. Marketing Sci. 40(4):509–525.CrossrefGoogle Scholar
  • Rao VR, Agarwal MK, Dahlhoff D (2004) How is manifest branding strategy related to the intangible value of a corporation? J. Marketing 68(4):126–141.CrossrefGoogle Scholar
  • Rust RT, Ambler T, Carpenter GS, Kumar V, Srivastava RK (2004) Measuring marketing productivity: Current knowledge and future directions. J. Marketing 68(4):76–89.CrossrefGoogle Scholar
  • Shepherd WG (1986) Tobin’s q and the structure-performance relationship: Comment. Amer. Econom. Rev. 76(5):1205–1210.Google Scholar
  • Simon CJ, Sullivan MW (1993) The measurement and determinants of brand equity: A financial approach. Marketing Sci. 12(1):28–52.LinkGoogle Scholar
  • Sinclair RN (2016) Reporting on brands. Stewart DW, Gugel CT, eds. Accountable Marketing: Linking Marketing Actions to Financial Performance (Routledge, New York), 168–181.Google Scholar
  • Sinclair RN, Keller KL (2014) A case for brands as assets: Acquired and internally developed. J. Brand Management 21(4):286–302.CrossrefGoogle Scholar
  • Sorescu AB, Spanjol J (2008) Innovation’s effect on firm value and risk: Insights from consumer packaged goods. J. Marketing 72(2):114–132.CrossrefGoogle Scholar
  • Sridhar S, Narayanan S, Srinivasan R (2014) Dynamic relationships among R&D, advertising, inventory and firm performance. J. Acad. Marketing Sci. 42(3):277–290.CrossrefGoogle Scholar
  • Sridhar S, Germann F, Kang C, Grewal R (2016) Relating online, regional, and national advertising to firm value. J. Marketing 80(4):39–55.CrossrefGoogle Scholar
  • Srinivasan R (2006) Dual distribution and intangible firm value: Franchising in restaurant chains. J. Marketing 70(3):120–135.CrossrefGoogle Scholar
  • Srinivasan S, Hanssens DM (2009a) Marketing and firm value: Metrics, methods, findings, and future directions. J. Marketing Res. 46(3):293–312.CrossrefGoogle Scholar
  • Srinivasan S, Hanssens DM (2009b) Marketing and firm value: Perspectives and conclusions. J. Marketing Res. 46(3):327–329.Google Scholar
  • Srinivasan S, Pauwels K, Silva-Risso J, Hanssens DM (2009) Product innovations, advertising, and stock returns. J. Marketing 73(1):24–43.CrossrefGoogle Scholar
  • Srivastava RK, Shervani TA, Fahey L (1998) Market-based assets and shareholder value: A framework for analysis. J. Marketing 62(1):2–18.CrossrefGoogle Scholar
  • Tobin J (1969) A general equilibrium approach to monetary theory. J. Money, Credit Banking 1(1):15–29.CrossrefGoogle Scholar
  • Torres A, Tribó JA (2011) Customer satisfaction and brand equity. J. Bus. Res. 64(10):1089–1096.CrossrefGoogle Scholar
  • Wang F, Zhang XPS, Ouyang M (2009) Does advertising create sustained firm value? The capitalization of brand intangible. J. Acad. Marketing Sci. 37(2):130–143.CrossrefGoogle Scholar
  • Wernerfelt B, Montgomery CA (1988) Tobin’s q and the importance of focus in firm performance. Amer. Econom. Rev. 78(1):246–250.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.