The Impact of Capital and Marketing Expenditure on Revenue Growth of Pharmaceutical Companies in Pakistan
DOI:
https://doi.org/10.62843/jssr.v6i2.739Keywords:
Revenue Growth, Capital Expenditure, Market Intensity, Firm Size, Intangible Assets, Pharmaceutical Industry, Pakistan, Resource-Based ViewAbstract
This study investigates the effect of capital investment, marketing intensity, firm size and intangible assets on revenue growth of pharmaceutical companies in Pakistan. A balanced panel data set comprising of five businesses listed on the Pakistan Stock Exchange (PSX) from 2015-2024 was constructed based on the Resource-Based View (50 firm-year observations). Secondary financial data were from the audited yearly reports. The panel least squares regression (using E Views 12) were used to test the proposed hypotheses. Market intensity (marketing expenditure) positively affects revenue growth (β= 3.8673, p= 0.1446). In contrast, revenue growth and business size are positively but insignificantly related while intangible assets are negatively but insignificantly related. These findings provide some support for the Resource-Based View as marketing capabilities seem to be the most important strategic resource to drive revenue growth in the sample. The study adds to the literature by focusing on revenue growth and strategic investment in the pharmaceutical sector of Pakistan and offers practical insights on resource allocation for managers and policy makers.
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