Shareholder Activism and the Role of Marketing: A Framework for Analyzing and Managing Investor Relations

This paper proposes a conceptual framework that shows the role of (the) marketing (function) in managing investor relations. The framework complements existing literature on the marketing-finance interface and explicitly includes investor relationships as market-based assets. The framework provides (the) marketing (function) with tools to analyze and manage investor relations in order to improve companies’ market performance and increase shareholder value by lowering the costs of shareholder activism. Three real-life scenarios of shareholder activism demonstrate the implications of the framework for marketing practice.Strategy;

A marketing-finance approach linking contracts in agricultural channels to shareholder value

A conceptual marketing-finance framework is proposed which links channel contracting in agriculture and the use of financial facilitating services (e.g., financial derivatives) to (shareholder) value creation. The framework complements existing literature by explicitly including channel contract relationships as market-based assets that can be managed to reduce cash flow volatility and hence increase shareholder value. We show how financial facilitating services (e.g., derivatives) can be used to complement the cash flows components of channel contract relationships thereby further reducing the risk adjusted cost of capital and improving shareholder value. In a field study of producers, wholesalers, and processors, in the potato and meat industry the framework shows how shareholder value can be enhanced by using financial facilitating services, such as derivatives, to complement marketing channel relationships. Moreover, this study shows how producers and managers from agribusiness companies can use such financial services as conflict-solving tools in case of incongruent contract preferences between channel members.marketing-finance, agricultural marketing strategy, decision-making, channels, Agribusiness, Agricultural Finance,

How do banks finance R&D intensive firms?:The role of patents in overcoming information asymmetry

We examine how banks finance R&D intensive firms, focusing on the role of patents in overcoming information asymmetry in bank lending. Consistent with moral hazard in due diligence and monitoring, we find that lead arrangers retain a larger share of syndicated loans when lending to R&D intensive firms. Patents can partly overcome moral hazard problems, as banks retain a smaller share of R&D intensive firms’ loans if these firms have patents as a signal of the quality of their inventions. Our results are robust to alternative explanatory variable definitions and syndicate structure measures, different samples and subperiods, and difference-in-difference estimations

Do good things come in pairs? How personality traits help explain individuals' simultaneous pursuit of a healthy lifestyle and financially responsible behavior

Both a healthy lifestyle and financially responsible behavior contribute to individual wellbeing and benefit society. Motivated by the fact that both types of behavior involve short-term sacrifices in exchange for uncertain long-term benefits and require self-control, we examine individuals' consistency in behavior across the health and financial domains. Using a large-scale data set of 3,752 employed Australians, we find that the majority of individuals behave in a consistently beneficial or detrimental way across both domains. This behavioral consistency relates to fundamental life outcomes, including physical and mental health, financial prosperity, and life satisfaction. In a new contribution to the literature, we show how personality traits—Locus of Control, the Big Five, Achievement Motivation—have a meaningful role in explaining the simultaneous pursuit of a healthy lifestyle and financially responsible behavior. These behavioral insights can guide policymakers in developing more effective strategies to steer individuals towards beneficial health and financial outcomes.</p

The effect of different needs, decisionmaking processes and networkstructures on investor behavior and stock market dynamics : a simulation approach

Striking investor and stock market behaviour have been recurrent items in the worldwide press for the recent past. Crashes and hypes like the Internet bubble are often hard to explain using existing finance frameworks. Therefore, the authors provide a complementing multitheoretical framework that is built on existing finance research to describe and explain investor?s behaviour and stock market dynamics. This framework is built on three main components: needs, decision making theory, and (social) network effects. This framework will be used to build a future simulation model of investor behaviour and to generate stock market dynamics. A brief outline of the design of these simulation experiments will be given.

Tarred with the Same Brush? Advertising Share of Voice and Stock Price Synchronicity

Using the informative view of advertising as their theoretical lens, the authors propose that advertising provides information to investors in financial markets, analogous to its role for customers in product markets. The authors extend previous marketing–finance research, which has focused on how advertising affects firms’ risk and returns, and investigate a novel outcome variable, stock price synchronicity. Consistent with their proposed theory, the authors find that firms that advertise more relative to competitors have lower stock price synchronicity, implying that these firms’ stock price movements are driven more by information that is specific to the firm rather than general industry- and market-wide trends. The effect of advertising investments on stock price synchronicity is moderated by the information demand versus supply about firms in financial markets given firms’ product characteristics and ownership structure, and the likelihood of spillover effects between product and financial markets given firms’ marketing strategies. The authors illustrate the relevance of their findings for marketing managers through an event study in which they demonstrate that firms with high stock price synchronicity are “tarred with the same brush” and experience negative abnormal returns when competitors have a product recall, whereas firms with low stock price synchronicity are not affected. </jats:p