Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)

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The Interactive Impact of Advertising Expenditure and Financing Constraints on Firm Performance under Industry Competition: Evidence from Chinese A-share Listed Companies

Authors
Qihao Jin1, *
1School of Economics and Management, University of Science and Technology Beijing, Beijing, 100083, China
*Corresponding author. Email: u202242822@xs.ustb.edu.cn
Corresponding Author
Qihao Jin
Available Online 16 September 2025.
DOI
10.2991/978-94-6463-845-5_81How to use a DOI?
Keywords
advertising expenditure; financing constraints; firm performance; industry competition intensity
Abstract

Previous studies have confirmed the positive effect of advertising expenditure on corporate performance and the negative impact of financing constraints on corporate performance. However, the interaction between these two factors and its influence on corporate performance has not been thoroughly investigated. To address this gap, this paper examines the impact of the interaction between advertising expenditure and financing constraints on corporate performance, based on data from Chinese A-share listed companies from 2010 to 2020. Furthermore, this study reveals that this interaction effect varies significantly across different levels of industry competition intensity, exhibiting notable industry heterogeneity. Under low industry competition intensity, the interaction acts as a “magnifier,” amplifying the positive effect of advertising expenditure on corporate performance. In contrast, under high industry competition intensity, the interaction becomes a “Resource Trap,” where increased advertising expenditure leads to a decline in corporate performance. The findings of this study offer a new perspective that integrates marketing and finance for both academia and corporate managers, aiding in the optimal allocation of corporate resources to achieve desired performance targets.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)
Series
Atlantis Highlights in Economics, Business and Management
Publication Date
16 September 2025
ISBN
978-94-6463-845-5
ISSN
2667-1271
DOI
10.2991/978-94-6463-845-5_81How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qihao Jin
PY  - 2025
DA  - 2025/09/16
TI  - The Interactive Impact of Advertising Expenditure and Financing Constraints on Firm Performance under Industry Competition: Evidence from Chinese A-share Listed Companies
BT  - Proceedings of the 2025 6th International Conference on Management Science and Engineering Management (ICMSEM 2025)
PB  - Atlantis Press
SP  - 807
EP  - 825
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-845-5_81
DO  - 10.2991/978-94-6463-845-5_81
ID  - Jin2025
ER  -