Jalal Rajeh Hanaysha

The impact of advertising and sales promotion on firm value and sales performance within the Jordanian manufacturing sector was examined, recognizing the significant role of advertising in enhancing competitive market outcomes. The study aimed to investigate the effect of advertising and sales promotion on firm value within the manufacturing Jordanian firms that holds a benefit for deciphering several challenges and opportunities that firms face within an emerging market context. Data from 64 Jordanian manufacturing firms listed on Amman Stock Exchange between 2014 and 2022 were analyzed. Regression analysis was applied across two models: one focused on the relationship between advertising expenditures and firm value, while the other assessed sales performance. Firm size and return on equity served as control variables across both models.
The results revealed that advertising and sales promotion expenses had a significant and positive effect on both firm value and sales performance. Specifically, advertising’s impact on firm value was characterized by a coefficient of 0.107 and a t-value of 3.640, while its effect on sales performance yielded a coefficient of 0.321 and a t-value of 9.372, both with p-values of 0.00, highlighting a strong statistical significance. Additionally, firm size demonstrated a robust positive effect on both outcomes, underscoring its role as a critical control factor. Return on equity, however, did not yield a significant effect. These findings underscore the importance of advertising as a driver of firm growth and market position, particularly in larger firms. Investment in advertising appears to foster sustainable value and performance enhancements, offering firms in competitive sectors a strategic path for growth.

Acknowledgment
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU250963].

Type of the article: Research Article

Abstract
In recent years, concerns over brand sustainability have gained attention in industrial markets, where financial decision-making and governance structures often prioritize operational efficiency over intangible assets. As industrial firms navigate competitive pressures and dynamic economic conditions, understanding the drivers of brand value erosion has become increasingly relevant. This study investigates whether sales growth, liquidity, and corporate governance influence brand decline in industrial firms listed on the Amman Stock Exchange in Jordan.
The analysis uses panel data covering the years 2014 to 2023, with a focus on variables extracted from audited financial statements. Brand decline is measured using operating margin as a financial proxy, while corporate governance is represented by board size and the number of independent directors. Liquidity is assessed through the current ratio, and sales growth is calculated annually.
The results reveal that liquidity has a statistically significant and positive effect on brand decline (coefficient = 0.071, p = 0.003), explaining approximately 2.4% of the variance. Corporate governance factors are jointly significant (F = 6.51, p = 0.002), accounting for 6.2% of brand decline variation, although individual components – board size and board independence – do not retain significance when entered together due to multicollinearity. Sales growth shows no significant effect on brand decline (p = 0.841).
These findings suggest that excess liquidity and governance structure can influence brand outcomes, while sales growth alone does not safeguard against brand erosion. Industrial firms must align financial and governance strategies with long-term brand management priorities.

Acknowledgment(s)
This research was funded through the annual funding track by the Deanship of Scientific Research, from the vice presidency for graduate studies and scientific research, King Faisal University, Saudi Arabia [Grant no. KFU253311].