The Research On The Relationship Among Advertising Investment,Market Competition And Enterprise Performance

In today's society,people are dazzled by advertisements everywhere on mobile phones,the Internet,and television.It seems that various companies' advertising costs such as advertising investment are increasing.In today's society,the mobile phone industry as we know it is extremely competitive.Gionee,one of the mobile phone brands,also imitates competitors Xiaomi,oppo,etc.to make large advertising investments,and even spends more than its own operating income on advertising costs.At a loss,invite stars to advertise,sponsor variety shows,TV series,etc.,but the effect is no other mobile phone manufacturers Well,once the giants of the mobile phone industry can only declare bankruptcy.From this case,it can be seen that advertising by enterprises is very important.Some enterprises can improve their performance but cannot blindly advertise.This article starts from the basic theory of SCP theory,information mismatch theory,etc.,and selects all A-share listed companies as the research object.The annual span of data is from 2012 to 2018.Based on these sample data,empirical analysis of advertising investment,product market competition,and slave companies The relationship between financial and market-considered corporate performance.It also considers the differences in the relationship between advertising and performance under the intensity of competition in different industries and the company's own competitive position.Finally,the differences in the nature of the company's property rights are also considered,and the above relationship is extended based on the different nature of the property rights.The research results show that the advertising investment of a company has a significant positive correlation with both corporate performance measured from a financial perspective and corporate performance measured from a market perspective.Advertising spending in the optional consumer goods industry has a positive effect on corporate performance.The direction effect is better than that of daily consumer goods.Among them,the intensity of industry competition reversely regulates the relationship between advertising expenditures and corporate performance.The more intense the industry competition,the lower the effect of advertising investment on the company's financial performance and market performance.;The company's own competitive position is positively regulating the relationship between advertising expenditure and company performance.It shows that the higher the company's competitive position in the industry,the role of advertising investment in the company's financial performance and market performance will be strengthened.Finally,according to the uniqueness of Chinese enterprises,the research on the relationship between the two is extended to state-owned enterprises and private enterprises.The analysis results show that compared with state-owned enterprises,private enterprises' investment in advertising has a better effect on improving performance and industry competition.The regulating effect of intensity and the company's own competitive position is greater.Finally,some relevant suggestions are put forward based on the conclusions of this paper.