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Write a 2 page essay on Business Journal Review.. The author has suggest that that the impact of market share, age of retailer, size of retailer and advertising intensity of the retailer on its value
Write a 2 page essay on Business Journal Review.
. The author has suggest that that the impact of market share, age of retailer, size of retailer and advertising intensity of the retailer on its value condenses the overall impact of value added to retail chain by opening and closing of stores. Therefore, attempts to explore the following aspects:
The data is collected from the retail industry of US. for132 out of 1,447 listed retailers between 1998 to 2009. The market value of the firm had been the dependable variable and market share, advertising intensity, size of retailer in terms of number of employees and the age of business in terms of the number of years of existence in the market are the independent variables. The parsimonies model of specification was used for studying the relationship.
It has been identified that the closing of unprofitable stores by the older chains enhance the firm’s value due to hierarchical issues. It requires focusing on retaining the existence in target markets.
In both activities opening and closing of retail stores, the firm’s value gets decreased when the size of the firm increased. The bigger retailers are panelized high for consistently opening of stores. The actions of huge retailers are strongly followed by the investors and the analysts of the industry. Therefore, any move by the retailer impacts very much on the investors.
The impact of opening and closing of stores on the firm’s value has been determined in this research for exploring the impact of distribution strategy on shareholder’s value. Four factors were used to measure the impacts are market share, advertising intensity, and size of firm and age of firm. Most of the investors believe that the expansion of retail chain always increases the firm’s value but this research has proved the perception of most of the investors wrong with the findings of this research. It has been proved that expansion doesn’t always increase the firm’s value. It varies from
