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Yuan Wen Dissertation (Final Version)1,019.89 kB
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Dissertation
The Effect of Equity Strategies on Marketing Outcomes
Doctor of Philosophy (PhD), Washington State University
01/2020
Handle:
https://hdl.handle.net/2376/118319
Abstract
Equity strategies refer to the financial strategies that firms use to assign the ownership rights in the equity market. Across two essays, my dissertation highlights how different equity strategies relate to a firm’s marketing decision making and performance. In Essay 1, I examine how a firm’s stock repurchase—one of the most important equity strategies—influences firm performance under two important contingencies: diversification and marketing myopia. Results suggest that the stock repurchase strategy is negatively associated with marketing capability as well as long-term performance, and positively associated with short-term performance. For diversified firms, the effect of stock repurchase on short-term and long-term performance will be weaker. Furthermore, the negative moderation effect on the short-term and long-term performance becomes weaker in the high marketing myopia context. In Essay 2, I examine the effects of different equity strategies—stock repurchase, stock split, and stock dilution—on strategic marketing ambidexterity. In addition, I show that different equity strategies affect marketing based on two underlying mechanisms: financial slack and the financial decision-making power of chief marketing officers (CMOs). I found that stock split and stock dilution are negatively associated with CMOs’ financial decision-making power. In addition, stock split and stock dilution are associated with strategic marketing ambidexterity shift to exploitative activities through decreasing CMOs’ financial decision-making power. The present research emphasizes the essential marketing environment (e.g., marketing myopia) and marketing explanatory mechanism (e.g., CMOs’ financial decision-making power) in the context of equity strategies. Thus, the results help marketing managers to underline the value of marketing activities in boardroom discussions and provide explanation in terms of the effects of equity strategies on marketing decision-making and firm performance.
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Details
- Title
- The Effect of Equity Strategies on Marketing Outcomes
- Creators
- Yuan Wen
- Contributors
- Babu J Mariadoss (Advisor)Alberto Sa Vinhas (Committee Member)Uchila Umesh (Committee Member)
- Awarding Institution
- Washington State University
- Academic Unit
- Carson College of Business
- Theses and Dissertations
- Doctor of Philosophy (PhD), Washington State University
- Number of pages
- 145
- Identifiers
- 99900581412001842
- Language
- English
- Resource Type
- Dissertation