文档介绍：Xueming Luo
When Marketing Strategy First Meets
Wall Street: Marketing Spendings
and Firms’ Initial Public Offerings
This article examines the role of marketing in the context of initial public offerings (IPOs), a neglected issue in the
extant literature. The results from a large-scale, cross-industry study indicate that firms’ pre-IPO marketing
spendings help reduce IPO underpricing and boost IPO trading in the stock market. The econometric models also
suggest that these effects are heterogeneous; that is, they are more salient for firms with higher cost reduction
efficiency and in markets with a smaller number of historical IPOs. With regard to theory, this research ushers in a
greenfield of IPOs, helping build more powerful theories of market-based assets and customer equity. With regard
to practice, it builds the case for not cutting marketing before an IPO. Prudent investors may be better able to pick
“star” IPOs if they can track pre-IPO marketing spendings and model firm cost reduction efficiency simultaneously.
Overall, this article offers fresh implications for the marketing–finance interface, uncovering brand-new IPO-based
reasons that marketing can help create shareholder value.
Keywords: marketing strategy, initial public offering, marketing–finance interface, efficiency, customer equity
ow can marketing help create firm shareholder stand fame (Brau and Fawcett 2006; Ritter and Welch
value? Recent research on the marketing–finance 2002).
Hinterface has shown that marketing spendings (., Indeed, according to the popular trade press, IPO firms
expenses munications, market research, advertising, have been identified as growth engines of the . econ-
and other marketing efforts) matter financially after firm omy, amassing $43 billion in 2006 and $34 billion in 2005
stocks are traded publicly (., Joshi and Hanssens 2008; on eback trail after garnering $97 billion in 2000,
Luo 2008; McAlister, Srinivasan, and Kim 2007; Mizik an