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The purpose of this paper is to analyze the association between banks’ advertising expenses and accounting measures of income and profitability for banking sector.

In this study the authors have used distributed lag models to investigate the association between advertising expenses and banks’ financial performance. To investigate the long-term effect of advertising expenses on financial performance of banking sector Koyck’s distributed lag models have been used.

The results confirm a significant and positive association between advertising expenses and financial performance. Besides its positive effect, the authors provide a basis for detecting the extent to which advertising has long-term benefits. The results show a positive association between advertising expenses and financial performance that extend that extends over time, thereby suggesting that advertising expenses should be capitalized and then amortized instead of being incurred as an expense immediately.

Although there are lots of studies about advertising and its effect on financial position of firms, research about advertising effects on financial performance of banking sector is very scarce. Therefore, this study has a potential to shed light on research about marketing aspect of financial sector. Besides, empirical results show a positive association between advertising expenses and financial performance that extend that extends over time (interest income, total operating income and return on assets), thereby suggesting that advertising expenses should be capitalized and then amortized instead of being incurred as an expense immediately. To sum it all, the paper finds an evidence for banking sector that advertising inholds “future economic benefits” which is the key criterion necessary for asset recognition.

The problem of differentiation and creating a unique selling proposition is higher in the banking sector, as, any new service or product introduced is very quickly imitated by the competitors. The benefits of advertising have been seen to have long-term effects on the firm’s performance and debate is still on whether the expenses of advertising should be amortized or expensed immediately has been the area of concern for many years. The purpose of this paper is to carry out a comparative analysis of advertising effectiveness on private and public sector banks in India.

This study has included 33 listed commercial banks out of 41 listed on S&P BSE 500. Out of 33 banks, 14 banks belong to private sector and 19 banks are public sector banks. Data are extracted for a period of 14 years from 2004 to 2017 from Ace Equity. In total, there are 462 firm-year observations. Interest income, operating income and return on assets are the accounting measures considered in this paper. All the variables are deflated by total assets at the beginning of the period. To assess the effect of advertising on financial measures, distributed lag model is used.

The results of Koyck model suggest that it takes lesser time for private sector banks to see a significant change in interest income and return on assets with a change in advertising expenses whereas in case of operating income, the results achieved are opposite.

This study may be useful from accounting point of view to find out whether advertising creates long-term or short-term impact on financial measures. The study would help in determining the number of years for which advertising expenses can be amortized. With the help of these results, it can be said that advertisement expenses can be capitalized and then expensed over coming years. This means, to some extent advertisement has some long-run impact on financial measures considered in the study. In order to achieve more robust results, this study can be performed on different sectors.

Before distribution managers can effectively manage customer service, they must be able to determine how sales respond to various levels of service. The potential for customer service to contribute to a company's sales is generally acknowledged and has received considerable attention in the literature over the past several years. Much of the work, however, has been of a theoretical nature. Empirical studies have been confined largely to analyses of data collected by surveys which measure respondents' opinions regarding varying levels of logistics service. Hence, conclusions are based on sales expectations or purchase intentions of sellers and buyers, respectively. It is not suggested that respondents would misrepresent their concern for service levels, but little work has been done to confirm the proposed sales‐service relationships through analysis of historical data. If expectations and/or intentions indeed become actions, the impact should be observable in sales patterns over time.

Several lessons learnt from a Bayesian analysis of basic macroeconomic time-series models are presented for the situation where some model parameters have substantial posterior probability near the boundary of the parameter region. This feature refers to near-instability within dynamic models, to forecasting with near-random walk models and to clustering of several economic series in a small number of groups within a data panel. Two canonical models are used: a linear regression model with autocorrelation and a simple variance components model. Several well-known time-series models like unit root and error correction models and further state space and panel data models are shown to be simple generalizations of these two canonical models for the purpose of posterior inference. A Bayesian model averaging procedure is presented in order to deal with models with substantial probability both near and at the boundary of the parameter region. Analytical, graphical, and empirical results using U.S. macroeconomic data, in particular on GDP growth, are presented.

Seeks to present a microeconomic model to analyse theoretically BSC, to develop a simplified model version and to apply it empirically.

The model assumes exponential production and demand functions with constant scale factors and elasticities. It is estimated for Nokia's time‐series 1993‐2002 and partly for 35 Compustat firms.

Direct statistical estimates act properly only as initial values iteratively adjusted for the level of the model. Model parameters show in experiments a significant effect on decision variables such as selling price. Most firms show decreasing returns to scale that are found also in a cross‐sectional analysis.

The model assumes constant elasticities and growth which should be relaxed. Most numerical experiments are limited to Nokia's data. Estimates applied in experiments are not fully justified on statistical grounds. More effort should be made to reach a consistent set of estimates at the level of the model.

In growth strategy, price discounts may lead to declining profitability, while productivity is increasing. This results in peculiar causal relationships in strategic mapping of BSC. If strategy is shifted towards revenue maximization, more focus should be given to customer relationships and development and learning in BSC. Firms should in strategic planning pay special attention to rate of discount and planning horizon, because they affect selling price.

This research paper presents a new model specification. It gives novel empirical evidence on parameter estimation and strategic behaviour in BSC framework.

The purpose of this paper is to investigate long-run commonality in liquidity using multiple proxies computed from limited order book data of NIFTY50 stocks. The findings indicate the existence of systematic liquidity or commonality on NIFTY50 market and comprising industries.

The sample comprises all intraday transactions corresponding to NIFTY 50 stocks for April 2015. The study runs firm by firm time series regressions to test the concept of long-run commonality, while controlling other effects.

Strong evidence is found in support of long-run commonality across three liquidity measures. On the basis of significance (10%) of long-run commonality beta (β_LR), the strength of long-run commonality is found to be highest in natural resources and infrastructure sector. Portfolios having greater exposure to these sectors will face diversification risk to a great extent.

Knowledge of long-run commonality helps portfolio managers in formulating diversification strategies and reshuffling the portfolio over the period. Commonality risk being non-diversifiable is a policy concern for regulators and central bankers. Its empirical evidence will assist in managing exchange organization and thus preventing market crashes because of sudden liquidity evaporation.

Although there are recent studies documenting commonality in short run, little empirical work has been done on commonality in the long run and in emerging markets such as India. This research contributes to the literature by testing concept of commonality in long-run on NIFTY50 stocks using detailed transaction data from National Stock Exchange.

This paper features a study of the dividend policies of the larger listed British companies. It focusses on the sample companies' usage of target payout ratios. A company with a target payout is defined as one which has a policy of attempting to pay out a fixed proportion of available earnings as dividends. In particular, it examines the extent of the usage of explicit target payouts, the range of target payouts adopted and the frequency of changes in such targets. It also examines the factors which are perceived to have an influence on the company's choice of these targets. Finally, it extends and parallels previous work by Partington (1984) on the use of target payouts by Australian companies.

Increasing protection in the world economy, especially in industrialised countries since the 1970s has increased the costs of restricting international trade. It is shown that in West Germany under inter‐industry specialisation the short‐run burden of protection is shared nearly equally by producers of non‐tradeables and exporters. In the longer run the costs shift more towards exporters. Under intra‐industry trade, however, a considerable portion of the burden is shifted onto producers of home goods in the short run. This portion even increases over time. Therefore, it is evident that the home goods sector is especially hit by import protection.

In the absence of any theoretical guidance, a solution to the question of what is the appropriate functional form for an import demand model can only be found empirically. Examines this question in the context of UK motor vehicle imports by applying a range of tests of functional form to two, alternatively specified, import demand models: the “traditional” price‐income model incorporating the popular but restrictive partial adjustment mechanism and a cost‐expenditure model that employs a less restrictive lag structure. Finds, principally that the commonly imposed linear or log‐linear functional forms cannot be rejected in relation to the price‐income specification, but there is some evidence that neither functional form may be appropriate in relation to the theoretically sounder cost‐expenditure model of import demand.