Author:
Oh Hannah,Bae John,Currim Imran S.,Lim Jooseop,Zhang Yu
Abstract
Purpose
This study aims to answer two unique related questions on the overarching relationship between a CEO’s personal religious affiliation, the firm’s advertising spending decision and its shareholder value. First, does the CEO’s religious affiliation, a proxy for risk taking, influence the firm’s advertising spending decision? Second, does the advertising spending decision mediate the relationship between the CEO’s religious affiliation and the firm’s shareholder value?
Design/methodology/approach
This study uses data on the religious affiliations of CEOs of publicly listed US firms, 1992–2014, from Marquis Who’s Who; advertising spending and shareholder value from Compustat, and panel data-based regression models including CEO characteristics from ExecuComp, and firm-, industry- and time-based controls.
Findings
We find higher advertising spending levels for Protestant over Catholic-led firms, and advertising spending mediates the relationship between a CEO’s religious affiliation and the firm’s shareholder value.
Research limitations/implications
Marketing theory needs to incorporate the missing but fundamental effect of the CEO’s religious affiliation-based values on decisions and outcomes.
Practical implications
Boards of Directors may need to align the CEO’s and their firm’s spending goals.
Originality/value
While previous studies focused on the influence of religious affiliation on consumers’ attitudes and behavior, and executives’ financial and R&D spending decisions, this study, to the best of the authors’ knowledge, is the first to investigate the effect of a CEO’s religious affiliation on the firm’s advertising spending decision and its shareholder value.
Cited by
3 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献