Back to Search
Start Over
The Financial Information Content of Perceived Quality.
- Source :
- Journal of Marketing Research (JMR); May94, Vol. 31 Issue 2, p191-201, 11p, 5 Charts
- Publication Year :
- 1994
-
Abstract
- The authors investigate whether movement in a firm's stock price, that is, a measure of firm value, is associated with information contained in perceived quality measures. In a model that also allows for the effect of economywide factors and a firm's return on investment, they find a positive relationship between stock return and changes in quality perceptions. These results imply that the quality measure contains information, incremental to that reflected by current-term accounting measures, about future-term business performance. They suggest that managers should convey information to the stock market, such as the brand's quality image, useful in depicting the long-term prospects of the business. By doing so, the stock market will rely less on short-term measures of business performance, and managers will be freer to undertake strategies necessary for ensuring the long-term viability of their firms. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00222437
- Volume :
- 31
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Journal of Marketing Research (JMR)
- Publication Type :
- Academic Journal
- Accession number :
- 9411112939
- Full Text :
- https://doi.org/10.2307/3152193