Question

Why is taking care of response variable important in marketing?

Answer 1

Answer:

1 The financial structure of firms impact “cumulative abnormal return on shareholder value”.

2  Cumulative abnormal return on operating business” should therefore be the dependent variable in many marketing event studies.

3  The leverage effect links the cumulative abnormal return on shareholder value to the respective return on operating business.

4 Knowledge about debt and non-operating assets enables to calculate the leverage effect.

5  A simulation and three empirical studies support the use of cumulative abnormal return on operating business.