The Chief Marketing Officer: an antidote to myopic earnings management practices

Kaur, P and Ramaswami, S N and Bommaraju, R (2021) The Chief Marketing Officer: an antidote to myopic earnings management practices. Marketing Letters. ISSN 0923-0645 (In Press)

Full text not available from this repository. (Request a copy)


To meet short-term earnings targets, firms often engage in real earnings management practices (REM) such as reducing advertising expenses and running sales promotions. Since these practices can hinder Chief Marketing Officers (CMOs) in building and maintaining market-based assets of firms, the authors hypothesize that firms with CMOs will be less likely to engage in REM. Using publicly available secondary data, the authors show that CMO presence decreases a firm’s propensity for REM and that the CMO’s ability and willingness to deter REM depend on CEO power and market power of the firm, respectively. The authors also conduct a survey of marketing personnel to extend the first study by examining marketing expenditures other than advertising (e.g., market research) and the firm’s revenue management actions (e.g., sales promotions). The authors find that CMO presence reduces the propensity for REM by cutting marketing expenditures but has no impact on REM through sales promotions.

Affiliation: Indian School of Business
ISB Creiators:
ISB Creators
Bommaraju, R
Item Type: Article
Uncontrolled Keywords: Advertising, Sales Promotion, Chief Marketing Officer, Myopic management, Marketing
Subjects: Marketing
Depositing User: Gurusrinivasan K
Date Deposited: 01 Apr 2021 04:36
Last Modified: 01 Apr 2021 04:36
Publisher URL:
Publisher OA policy:
Related URLs:

Actions (login required)

View Item View Item
Statistics for DESI ePrint 1428 Statistics for this ePrint Item