Advertising, Concentration and Profitability in the Iranian Food Industries with Dynamic Panel Data

Advertising, Concentration and Profitability in the Iranian Food Industries with Dynamic Panel Data

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Part of #Advertising, Concentration and Profitability in the Iranian Food Industries with Dynamic Panel Data# :

Publishing year : 2013

Conference : The first international epic political conference (with an approach to Middle East developments) and economic epic (with an approach to management and accounting)

Number of pages : 7

Abstract: Due to the complexity of modern societies, advertising is an inseparable part of social and economic systems, both for consumers and companies. In addition, the advertising intensity is different among different types of market structure. In other words, concentration as an important indicator of market structure plays a significant role in the company's decision about the amount of advertising expenditures. Using the panel of 22 four-digit Iranian food and beverage industries, this study analyzes the relationship between advertising intensity and concentration over the period from 2000 to 2012. The results show that there is an inverted U-shaped relationship between advertising intensity and concentration. Also, the profitability has negative and export intensity has positive and significant effects on the advertising intensity.