• Medientyp: E-Artikel
  • Titel: Effects of advertising and R&D on spillovers from a rival’s bankruptcy
  • Beteiligte: Jindal, Niket; Slotegraaf, Rebecca J.
  • Erschienen: Springer Science and Business Media LLC, 2024
  • Erschienen in: Journal of the Academy of Marketing Science
  • Sprache: Englisch
  • DOI: 10.1007/s11747-023-00931-9
  • ISSN: 0092-0703; 1552-7824
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  • Beschreibung: <jats:title>Abstract </jats:title><jats:p>Research shows that marketing investments play a pivotal role in a firm’s own bankruptcy. However, there are even more firms that are not confronting bankruptcy themselves yet face spillovers from a rival’s bankruptcy. For such firms, it remains unknown whether their marketing investments affect these spillovers. We show that, in contrast to their generally positive effects in other contexts, advertising and R&amp;D can either help or harm in the context of bankruptcy spillovers. The difference hinges on the industry’s growth and concentration. Advertising decreases (increases) a firm’s stock return when its rival files for bankruptcy in a low- (high-) growth industry and R&amp;D decreases (increases) the stock return in a low- (high-) concentration industry. Further, advertising has a stronger effect in a higher concentration industry. The results provide insight on how a firm’s advertising and R&amp;D help or harm its value, should one of its rivals file for bankruptcy.</jats:p>