An Empirical Research Of The Relationship Between Advertising And Firm Performance—An Analysis Based On Public Firms Of Food Manufacturing Industry

In order to improve the bad situation of information asymmetry between buyers and sellers in the market environment of commodity economy,advertising is essentially a means of marketing communication.Therefore,its most basic function is to convey information about products to target audiences,so as to influence the attitude and behavior of target audiences towards products.On the micro level,the influence of advertising seems to be mainly between enterprises and consumers;On the macro level,it also shapes our social form today.Therefore,it is necessary to discuss the relationship between advertising expenditure and firm performance.Through the analysis of the literature,scholars at home and abroad are mainly concerned with pharmaceutical manufacturing,car industry,restaurant industry,hotel industry,etc.,but few scholars have studied the food manufacturing industry as a sample industry.However the food manufacturing industry is closely linked with people's daily life,and the demand for food production is increasing as the living standard is improved.Therefore,this paper selects the food manufacturing industry as the research sample industry,combines the industry characteristics of the listed companies in China's food manufacturing industry and the development trend in recent years,through the reasonable selection of samples,the effective sample data collection and sorting,exploring the relationship between advertising and business performance.The existing research on other industries has a practical reference value to this paper.In the current research,the business income,sales return,the rate of return of the assets,the asset return,Tobin 's q etc.are used as a measure index for enterprise performance.The main innovation in this paper is to use the comprehensive performance evaluation method,to calculate the comprehensive score of the enterprise performance by using an entropy value method by collecting 16 single original financial index data of each sample enterprise,and to use this as an enterprise performance measurement index,to provide theoretical support for the enterprise management of the food manufacturing industry to develop a reasonable advertising budget.This article takes food manufacturing listed companies in our country as the research samples,using descriptive analysis and empirical analysis methods to investigate the relationship between the advertising expenses and business performance.Statistical analysis shows that the food manufacturing industry in ourcountry is increasingly concerned about advertising,and the cost of advertising is increasing,the financial performance of the firms show a developing trend as a whole;The empirical results of this paper show that the advertising expenditure of China's food manufacturing industry has a positive influence on corporate performance,while the positive influence has hysteresis effect,namely,the advertising behavior of t period has positive influence on the advertising performance after t period,but the effect is most obvious in t+1 period.According to the research conclusion,this paper puts forward the following four Suggestions,focusing on the effect of advertising expenditure on corporate performance,considering the effect of advertising time delay and and make plans for advertising expenditure,attaching importance to the cooperation of departments and improving advertising behaviors,and taking the market as the guide to carry out advertising campaigns and improve the quality of advertisements.