We assess the role of both accruals manipulation (AM) and real activities manipulation (RAM) in inducing overvaluation at the time of a seasoned equity offering (SEO). Our results reveal that earnings management is most consistently and predictably linked with post-SEO stock market...

Not too long ago the use of financial market data was viewed as outside the area of marketing and the interactions of marketing with the financial markets were little studied. Increasingly marketers are better appreciating the benefits of understanding how financial market data can be used to...

We present an approach for valuing branded businesses that enhances traditional multiplier-based valuation approaches by explicitly incorporating brand characteristics into the model. Empirical analysis indicates that valuation accuracy can be significantly improved by incorporating information...

Managers often have incentives to artificially inflate current-term earnings by cutting marketing expenditures, even if it comes at the expense of long-term profits. Since investors rely on current-term accounting measures to form expectations of future-term profits, inflating current-term...

The authors assess which brand asset metrics provide incremental information content to accounting performance measures in explaining stock return. The analysis focuses on the five pillars (i.e., central brand attributes) that form the basis for the newly updated Young amp; Rubicam Brand Asset...

We review the theory and empirical evidence of myopic management as it pertains to marketing practice. We document empirically the stock market's inability to properly value marketing and innovation activity in the face of potential for myopic management. We assess the total financial...

We find evidence that some firms attempt to inflate current-term earnings (and thereby stock price) at the time of a seasoned equity offering (SEO). Earnings inflation takes place both through accruals and real activity earnings management. The financial markets do not properly value firms...

Making use of the efficient markets hypothesis as a starting point for analysis, we outline an approach for assessing financial value-relevance of marketing metrics. We illustrate the approach by investigating the association between information contained in the American Customer Satisfaction...