International Journal of Management studies and Social Science Research

Li-Wei Lin 1, Xiao-Hui Zhou 2, SHIH-YUNG WEI 3

DOI: https://doi.org/10.56293/IJMSSSR.2024.5101

ABSTRACT: The main focus of this article is to examine the relationship between financial investment in marketing and the performance of non-financial listed companies in China over the period from 2007 to 2019. The research utilizes correlation analysis and panel data collection to investigate this relationship among a sample of 32,442 companies. The study employs regression equation models for analysis. The research explores how financial investment in marketing impacts a company's overall performance, as measured through the Tobin's Q ratio. It considers various variables, including endogenous and control variables. The control variables include company size, debt ratio, and the length of rigor, which are observed to assess the performance of the companies. The primary focus of the study is on non-financial listed companies in China. The findings of the research indicate that after incorporating marketing investment (MI), there is a deferred effect on the company's performance, which becomes evident in the third year. This suggests that financial investments in marketing have a positive and significant impact on corporate performance, particularly after three years of implementation. In summary, this article investigates the relationship between marketing investment and company performance in non-financial listed companies in China, emphasizing the delayed effects of marketing investments on a company's overall performance, which become more pronounced in the third year following the investment.

Keyword: Time Series Analysis Methods, ductility, corporate performance, marketing strength