Abstract:
From an accounting perspective, marketing expenses can be considered as a
factor that reduces company profitability. From a financial point of view, funds allo cated to marketing cause a decrease in the funds allocated to other investments.
However, business management should be considered broadly, and on that point,
spending on marketing efforts should be seen as investments that are expected to
increase the value and profitability of the company. In this respect, the purpose of
this study is to investigate the impact of marketing efforts on the financial perfor mance of listed companies in Borsa Istanbul (BIST). The scope of the study consists
of 66 companies included in the BIST Services Index (XUHIZ) between 2016-2019.
To determine this effect, six econometric models were established, and panel data
analysis method was chosen as the analysis method. Marketing expenditures to total
sales (MTS) and Marketing expenditures to operating expenditures (MTOE) were
used as proxies for marketing efforts. Return on Assets (ROA) as indicator of firm
profitability and Tobin's Q as indicator of the firm market value were used as firm
performance proxies based on previous academic research in this field. Consistent
with the literature, various control variables were also included in the models. Ac cording to the research findings, it has been determined that the increase in the ratio
of the financial value of marketing efforts to sales does not have a positive effect on
the market value or profitability of the company. On the other hand, it was deter mined that the increase in the ratio of marketing expenses to total operating expenses
positively affected both the profitability and market value of the company. These
findings obtained in the study show that marketing expenses should not be consid ered separately from other operating expenses of the company, companies that can
control other operating expenses and increase the share of marketing expenses in
total expenses can achieve better financial performance
