Market-Based Assets, Value Appropriation Activities, and Cash Flow Outcomes

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dc.contributor.advisorMittal, Vikasen_US
dc.contributor.committeeMemberHoskisson, Robert E.en_US
dc.contributor.committeeMemberOswald, Frederick L.en_US
dc.contributor.committeeMemberMoorman, Christineen_US
dc.creatorFrennea, Carlyen_US
dc.date.accessioned2016-01-15T21:56:09Zen_US
dc.date.available2016-01-15T21:56:09Zen_US
dc.date.created2015-05en_US
dc.date.issued2015-04-21en_US
dc.date.submittedMay 2015en_US
dc.date.updated2016-01-15T21:56:09Zen_US
dc.description.abstractUnderstanding marketing’s contributions to the financial performance of firms is an important question for the field. A critical performance metric is cash flow vulnerability, or the potential for downside cash flow outcomes relative to a target level. In Essay One, I conceptually develop the cash flow vulnerability construct and distinguish it from a seemingly related construct, cash flow volatility, by tracing their unique nomological networks. I also provide a deeper examination of how market-based assets reduce cash flow vulnerability. Specifically, I systematically describe the mechanisms underlying the protective effect of two market-based assets—brand equity and customer relationships—on cash flow vulnerability. In Essay Two, my focus is on two value appropriation activities that support brand equity and customer relationships—advertising and receivables management, respectively. I examine how the incremental effect of advertising expenditures and accounts receivable on cash flow outcomes is moderated by two contextual factors: business scope (a firm characteristic) and consumer sentiment (an environmental characteristic). I simultaneously explore three cash flow outcomes—levels, volatility, and vulnerability. To test these relationships, I utilize a dataset composed of over 2,500 firms from 1999 to 2013. I find that the incremental effect of advertising and receivables on cash flow outcomes is contingent on business scope and consumer sentiment and provide managers strategic prescriptions based on these findings. Specifically, (1) narrow business scope firms can maximize cash flow performance via low levels of receivables; high levels of advertising increase cash flow levels and decrease cash flow volatility, but not cash flow vulnerability; (2) broad business scope firms can increase cash flow levels and reduce cash flow vulnerability via low levels of advertising and receivables; however, high levels of advertising and receivables are needed to reduce cash flow volatility; (3) when consumer sentiment is low, firms can maximize cash flow performance via low levels of advertising and receivables; and (4) when consumer sentiment is high, no clear strategy emerges and firms must engage in trade-offs based on their cash flow performance goals.en_US
dc.format.mimetypeapplication/pdfen_US
dc.identifier.citationFrennea, Carly. "Market-Based Assets, Value Appropriation Activities, and Cash Flow Outcomes." (2015) Diss., Rice University. <a href="https://hdl.handle.net/1911/87876">https://hdl.handle.net/1911/87876</a>.en_US
dc.identifier.urihttps://hdl.handle.net/1911/87876en_US
dc.language.isoengen_US
dc.rightsCopyright is held by the author, unless otherwise indicated. Permission to reuse, publish, or reproduce the work beyond the bounds of fair use or other exemptions to copyright law must be obtained from the copyright holder.en_US
dc.subjectmarket-based assetsen_US
dc.subjectbrand equityen_US
dc.subjectcustomer relationshipsen_US
dc.subjectvalue appropriation activitiesen_US
dc.subjectadvertisingen_US
dc.subjectaccounts receivableen_US
dc.subjectcash flow vulnerabilityen_US
dc.subjectcash flow volatilityen_US
dc.subjectcash flow levelsen_US
dc.subjectbusiness scopeen_US
dc.subjectconsumer sentimenten_US
dc.titleMarket-Based Assets, Value Appropriation Activities, and Cash Flow Outcomesen_US
dc.typeThesisen_US
dc.type.materialTexten_US
thesis.degree.departmentMarketingen_US
thesis.degree.disciplineBusinessen_US
thesis.degree.grantorRice Universityen_US
thesis.degree.levelDoctoralen_US
thesis.degree.nameDoctor of Philosophyen_US
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