Since 2014
Customer satisfaction and corporate investment policies
The Journal of Business Economics and Management
View Archive Info| Field | Value | |
| Title |
Customer satisfaction and corporate investment policies
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| Creator |
Vo, Lai Van
Le, Huong Thi Thu Le, Danh Vinh Phung, Minh Tuan Wang, Yi-Hsien Yang, Fu-Ju |
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| Subject |
capital investments
cash flow fluctuation customer satisfaction cost of capital growth opportunities marketing-finance interface |
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| Description |
This paper examines the effect of satisfaction with firms’ products and services on their capital investment policies. Using data from the American Customer Satisfaction Index from 1994 to 2013, the results of the regression models show that firms with higher customer satisfaction will invest more heavily in capital expenditures in the future. The results further show that this positive effect is more pronounced for firms with less growth opportunities or a high cost of capital. This would include those firms with low market-to-book ratios, young and small firms, or firms in more competitive industries. Overall, this study argues that customer satisfaction is an important factor affecting the firm’s investment policy. The findings provide a better understanding of the role of customer satisfaction which can generate growth opportunities, reduce cost and motivate a firm to invest more in capital.
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| Publisher |
VGTU Press Technika
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| Date |
2017-04-21
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
https://journals.vgtu.lt/index.php/JBEM/article/view/1183
10.3846/16111699.2017.1280845 |
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| Source |
Journal of Business Economics and Management; Vol 18 No 2 (2017); 202-223
2029-4433 1611-1699 |
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| Language |
eng
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| Relation |
https://journals.vgtu.lt/index.php/JBEM/article/view/1183/926
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