숙박기업의 광고활동이 시장지배력에 미치는 영향: 수정된 러너지수를 활용하여

In the lodging industry, discretionary spending is concentrated on advertising expenditure. Through advertising, firms enjoy improved firm performances, such as occupancy rate, RevPAR, etc. On the other hand, from the perspective of an industrial organization, advertising is likely to increase market power and the increased market power may cause positive effects on firm performance. However, to the best of our knowledge, there is no empirical study investigating the relationship between advertising expenditure and market power. To fill this research gap, we estimated the effect of advertising expenditure on market power by using the adjusted Lerner index as a proxy for market power. This study used financial statement data in the lodging industry in South Korea from 2002 to 2021. We collected data by using TS2000, a software that provides firms’ financial statement data in South Korea. By using the data, this study created an unbalanced panel dataset. To address the endogeneity problem which may exist due to the reverse causality between advertising expenditure and market power, we used two-stage least squares regression analysis by utilizing instrumental variables. The results showed that advertising expenditure has positive effects on market power. In addition, this study showed that there is an inverted U-shape relationship between advertising expenditure and market power. The approaches and the results of this study provide several academical and managerial implications.