— Nowadays, it is crucial to determine the effects of marketing, selling and distribution expenditures on firm performance. Many research have been conducted to highlight whether this relationship exists or not. In this perspective, the main purpose of this research is to detect the relationship between marketing expenses and firm performance of 22 companies that were listed on the BIST Textile, Leather Index from 2009 to 2013. The impact levels were determined by cross sectional time series analysis technique. According to Hausman Test results, it was found that random effect model was appropriate for Model 2, whereas fixed effect model was suitable for Model 1 and Model 3 we conducted. ME coefficient was found statistically significant with dependent variable ROE. In addition, a concave relationship between marketing expense and firm performance was found by analysing ME2 and this result is in line with the literature.
— Marketing expense, firm performance, BIST textile, leather index.
Fatih Konak is with the Hitit University, FEAS, Business and Administration, Çorum, Turkey (e-mail: email@example.com).
Cite: Fatih Konak, " The Effects of Marketing Expenses on Firm Performance: Empirical Evidence from the BIST Textile, Leather Index," Journal of Economics, Business and Management vol. 3, no. 11, pp. 1068-1071, 2015.