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논문 기본 정보

자료유형
학술저널
저자정보
신희정 (동의대학교)
저널정보
한국무역전시학회 무역전시연구 무역전시연구 제16권 제4호
발행연도
2021.12
수록면
59 - 78 (20page)

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This study investigates empirically the effect of advertising activities on the financial performance in convention centers. While the previous studies reported that advertising activities of companies have a positive effect on financial performance in general, the financial effect of advertising expenditure is expected to be different in firms which operate with business purpose of common good. Using financial data of top 5 convention centers (i.e., COEX, KINTEX, BEXCO, EXCO, and ICC) in Korea, the study conducted the regression analysis, taking advertisement expenses as a proxy for the level of advertising activities, and sales revenues or operating income for the financial performance. The empirical results reveal that the advertising activities have a positive relation to financial performance, but only sales revenues. This result holds with the analysis on future changes in the financial performance. This indicates that the advertising activity of the convention company play a positive role in enhancing the financial performance, while its relationship with the operating profit produced in the company's accounting system is difficult to be grasped. This study is meaningful in that it shows the empirical findings of the effect of advertising activities in the convention centers on financial performance. The findings suggest that it is necessary to increase the expenditure on the advertisement to highten the profitability of the convention center.

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