Open AccessBrand promotion cost outlay on financial performance of telecommunications industry in Nigeria
Author(s) -
Hwerien Rosemary Idamoyibo
Publication year - 2021
Publication title -
international journal of accounting and economics studies
Language(s) - English
Resource type - Journals
ISSN - 2309-4508
DOI - 10.14419/ijaes.v9i2.31051
Subject(s) - profit margin , business , panel data , unit cost , unit (ring theory) , promotion (chess) , return on assets , ordinary least squares , profit (economics) , operating margin , return on equity , population , marketing , agricultural economics , economics , agricultural science , finance , profitability index , mathematics , mathematics education , environmental science , politics , political science , law , econometrics , microeconomics , demography , sociology
This study ascertained the impact of brand promotion cost outlay on financial performance of telecommunications industry in Nigeria. The research adopted ex-post facto research design and makes use of secondary sources of data. The population of the study comprised the four telecommunications network providers in Nigeria, MTN, GLO, 9Mobile, and Airtel. The study makes use of all the four telecom-munications providers in Nigeria as its sample and obtained the data from their annual financial reports. The study employed the technique of ordinary least square (OLS) based on panel regression analysis. The findings showed that AC increased by a unit percentage, the ROA decreased by -4.1 units; SC increased by a unit, the ROE decreased by -6.7 units; while CE increased by a unit, the PRM increased by -4.3 units, vise visa. The study showed a positive and significant impact of advertising cost on return on asset, positive and significant impact of sales cost on profit margin, positive and significant impact of celebrity endorsement cost on profit margin over the period. The study, therefore, concluded that there is a positive and significant impact of brand promotion cost outlay on financial performance of telecommunication industries in Nigeria.