The Effects of Marketing Expenses on the Firm Performance of Quoted Consumer Goods Firms in the Nigerian Exchange Group (NGX)
Samuel Ughulu Ehimen
Ochuko Joy Edheku
Jacob Martins Siga
Festus Elugom Ubogu
Samuel Ejiro Uwhejevwe-Togbolo*
The study investigated the effects of marketing expenses on the firm performance of quoted consumer goods firms in the Nigerian Exchange Group (NGX). The study acknowledged that a firm’s value is a reflection of the company's expected future worth, which is primarily determined by its marketing efforts. Thus, a company's value represents its anticipated future worth, which primarily depends on its marketing initiatives. Short-term profitability is also negatively impacted by marketing and advertising expenses. The analysis modifies the previous approach employed in research of the BIST Textile, Leather Index and the secondary data is utilized on 22 quoted companies between 2020 - 2024. This was done by cross-sectional time series analysis and pooled Ordinary Least Squares (OLS) regression. This study's finding is that marketing must be considered by the consumer goods companies in Nigeria as an investment that will yield profits, especially when operational measurements, including ROA and ROE, are taken into account. Managers must also remember that the response of the stock market to marketing efforts cannot always be instantaneous, as accounting performance and thus long-term preparation and patience must be planned. The study concluded that the size of the firm also contributed to the moderated performance results, especially in the way the market views the value. It was recommended in the study that to achieve performance benefits and prevent damaging underinvestment, firms have to achieve minimum levels of effective marketing investments.
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