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Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 9
First page : ( 201) Last page : ( 211)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00926.8

The impact of advertising expenditures on the company's risk

Gorgizadeh Majida, Pour Meysam Jaffaria, Ahmadi Ahmadb, Salehi Mehrdadc

aDepartment of Human Science, Accounting, Payame Noor University, IR of Iran

bDepartment of Human Science, Business Management, Payame Noor University, IR of Iran

cDepartment of Accounting, Nourabad Mamsani Branch, Islamic Azad University, Nourabad Mamsani, Iran

Online published on 6 September, 2014.

Abstract

The purpose of this study is to investigate the relationship between the advertising expenditures and the company's risk in Tehran's stockExchange companies. In this study, the information of 1000 companies was analyzed synthetically by the use of integrative regression from 2006 to 2012. The research hypotheses would study the relationship between the ratio of advertising expenditures to assets (advertising price) and the ratio of advertising expenditures to sales (advertising intensity) with company's risk. The results of the study showed that none of the hypotheses would be approved. That is, there isn't a meaningful relationship between the ratio of advertising expenditures to the assets and the ratio of advertising expenditures to the sale with company's risk.

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Keywords

The ratio of advertising expenditures to assets, the ratio of advertising to the sale, company's risk.

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