We found that the more earnings-oriented language was in a call - think words like lucrative or revenues - the more likely a management team was to cut their marketing budget for a boost in earnings.
Unlike business-as-usual budget shifts, the motive in these cases was to raise short-term earnings to gain personal profits or satisfy investor pressure, which proves to be shortsighted.
Myopic marketing spending decisions often happen before initial public offerings, share repurchases, and executive retirements, harming stakeholders in the long term by leading to market value loss.
Collection
[
|
...
]