{"title":"The Impact of Advertisement on Financial Performance: A Case Study","authors":"Amitava Saha, Dr. Kushal De","doi":"10.36348/sjbms.2022.v07i02.003","DOIUrl":null,"url":null,"abstract":"The impact of advertisement on financial performance of a company is manifold and it plays as a leverage to increase net sales which have created positive effect on profit. The present study tries to examine how advertisement expenditure affects the variables like net sales of the product, retained earnings, earnings per share and profit after tax by a representative study on Maruti Suzuki India Limited from 2009-10 to 2019-20. It is seen that all the variables have a positive correlation with advertisement which implies that cost of advertisement have a causal relationship with the variables. It is found that advertisement expenses of the company have motivated the target customers’ buying behavior and is reflected through the increase in net sales and profits of the product over a period of time.","PeriodicalId":277639,"journal":{"name":"Saudi Journal of Business and Management Studies","volume":"142 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Saudi Journal of Business and Management Studies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.36348/sjbms.2022.v07i02.003","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 1
Abstract
The impact of advertisement on financial performance of a company is manifold and it plays as a leverage to increase net sales which have created positive effect on profit. The present study tries to examine how advertisement expenditure affects the variables like net sales of the product, retained earnings, earnings per share and profit after tax by a representative study on Maruti Suzuki India Limited from 2009-10 to 2019-20. It is seen that all the variables have a positive correlation with advertisement which implies that cost of advertisement have a causal relationship with the variables. It is found that advertisement expenses of the company have motivated the target customers’ buying behavior and is reflected through the increase in net sales and profits of the product over a period of time.