The Economic Relevance of Chief Marketing Officers in Firms’ Top Management Teams

Journal of Business & Economics Research – December 2013 Volume 11, Number 12

35 Pages Posted: 12 Sep 2014

See all articles by John L. Abernathy

John L. Abernathy

Kennesaw State University

Thomas R. Kubick

University of Nebraska-Lincoln

Adi Masli

University of Arkansas - Sam M. Walton College of Business

Date Written: December 1, 2013

Abstract

The presence of the Chief Marketing Officer (CMO) in the top management team (TMT) should translate into additional wealth creation for shareholders. Using performance attribution analysis, the authors construct a long-short portfolio that buys (sells) stocks of firms with (without) a CMO in the TMT and find this investment strategy would have earned risk-adjusted excess returns of approximately 3%. Additional analyses suggest the value of having a CMO in the TMT manifests primarily among firms with high operating margin, low asset turnover, high profitability, high R&D intensity and high advertising expenses. The authors conclude that having a CMO in the TMT has a positive impact on shareholder wealth.

Keywords: chief marketing officer, top management team, shareholder value, performance attribution analysis

Suggested Citation

Abernathy, John L. and Kubick, Thomas R. and Masli, Adi, The Economic Relevance of Chief Marketing Officers in Firms’ Top Management Teams (December 1, 2013). Journal of Business & Economics Research – December 2013 Volume 11, Number 12. Available at SSRN: https://ssrn.com/abstract=2494452

John L. Abernathy (Contact Author)

Kennesaw State University ( email )

1000 Chastain Road
Kennesaw, GA 30144
United States

Thomas R. Kubick

University of Nebraska-Lincoln ( email )

307 College of Business Administration
Lincoln, NE 68588-0488
United States

Adi Masli

University of Arkansas - Sam M. Walton College of Business ( email )

Fayetteville, AR 72701
United States

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