Investigating the Relationship between Capital Structure and Marketing Measures

Document Type : Original Article

Author

Asistant professor, department of financial engineering, faculty of industrial engineering, k.n.toosi university of technology, Tehran, Iran

Abstract

The output of direct / indirect relationships of companies' financial structure and marketing measures and their long-term impact on customer satisfaction has various theoretical dimensions in different countries. This article analyzes the relationship between capital structure and marketing practices of insurance companies with emphasis on advertising and important financial dimensions in companies. In this regard, by collecting data of insurance companies listed on Iranian capital market in the period 2015-2020 using data panel regression and generalized method of moment, the statics and dynamics of relationships are examined. The results of this study show that although customers do not know about the capital structure of the company, but the results are understood as a result of the marketing behavior of insurance companies. Companies that use more financial leverage are forced to pay debts from the company's internal resources, and this can, in addition to agency problems and devaluation of the market, slow down the company in marketing activities and ultimately have a negative impact on customer satisfaction. The results can be helpful in making comprehensive decisions by managers of insurance companies in choosing the appropriate financing in terms of the effect on customer satisfaction.

Keywords

References

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Budget and Finance Strategic Research
Volume 2, Issue 4 - Serial Number 8
Winter Quarterly
March 2022
Pages 161-179

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History

  • Receive Date: 17 January 2022
  • Revise Date: 23 February 2022
  • Accept Date: 23 February 2022

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