Harishankar Vidyarthi
This empirical note investigates the impact of advertising expense on the firm performance, and moderating impact of human capital and firm size on this relationship for the 69 Indian hospitality firms during the period 2012 - 2022. We employ panel fixed effect regression to analyse the relationship. Empirical results suggest that advertising spendings significantly boost firm performance measured through net sales, asset turnover ratio and return on assets. Further, human capital and size positively and significantly moderates the advertising spending – firm performance relationship only in case of net sales as performance measure. Thus, hospitality firms should continue to develop long term advertising policy to have better performance.