Promotional expenditures, market competition, and thrift behavior

Document Type

Article

Publication Date

1-1-2000

Abstract

This article investigates the impact of promotional expenditures or advertising on the performance and asset and liability characteristics of firms in the U.S. savings and loan industry over the period 1985 to 1989. The results of a simultaneous equation analysis on a sample of 2,534 thrifts in the Southeast region indicate that promotional expenditures had a strong positive impact on the profitability of their non-interest business activities. The promotional expenditures of thrifts were found to be positively related to their investment in nontraditional assets and their reliance on purchased funds. The findings indicate that promotional expenditures have increased due to the increased competition in the local markets as a result of the introduction of interstate banking during the period. J Busn Res 2000. 50.177-184. © 2000 Ehevier Science Inc. All rights reserved.

Identifier

0034311513 (Scopus)

Publication Title

Journal of Business Research

External Full Text Location

https://doi.org/10.1016/S0148-2963(99)00030-2

ISSN

01482963

First Page

177

Last Page

184

Issue

2

Volume

50

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