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Showing posts from May, 2011

Marketing Startegy Meets Wall Street Conference

The last weekend I attended a conference on marketing-finance interface (Marketing Strategy Meets Wall Street II) at Boston University. This is a bi-annual conference that brings together the researchers who are interested in linking marketing to financial value. The main motivation behind it was to develop marketing performance measures that can be interpreted easily by the top management. This way the value of marketing effort is easily communicated within the firm.

A Few Key Observations

1. Researchers have started using more complex econometric models. Although many papers adopted some straightforward estimation methods from finance, they used them just as a base upon which to construct a more sophisticated model.

2. Abnormal returns as a performance metric have become a huge rage with around 30 (mine including) out of some 40 papers  incorporating them in the analyses. As an aside I think that abnormal returns are noisy and nobody can be sure whether they are really abnormal!

3. …