Abstract

In the following paper, the inter-industry differences in the effect of advertising on the performance of the firm will be analyzed. While much literature has contributed to advertising with other variables such as profitability and concentration, few have studied how this effect may differ between firms in consumer goods industries and firms in producer goods industries. The hypothesis that is tested is that if advertising has a positive and significant relationship with firm performance, then this effect will be stronger for firms in consumer goods industries. A two-stage least squares regression is run to test the hypothesis, but the results turn up insignificant, resulting in not enough sufficient evidence to reject the null hypothesis of no difference between the industries.

Advisor

Sell, John

Department

Economics

Publication Date

2015

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2015 Robert M. McLane III