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Study Links Hispanic Market Investments with High Shareholder Equity
Chain Store Age
Tuesday, February 7, 2006
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A study by the Santiago Solutions Group (SSG) reveals corporate leaders in the Hispanic Market also lead in creating shareholder value. The study “Does a Well-Resourced Hispanic Corporate Strategy Translate into Shareholder Value Creation?” found that the companies that allocate the highest percentage of advertising resources to Hispanic marketing produce a four times higher than average return on equity than the followers. The study found that between 2000 and 2004, 10% of the companies allocating the highest resources to Hispanic advertising as a percentage of their total advertising spending created a mean cumulative return on shareholder equity of 9.0, while the remaining 90% of the companies had a return of only 2.2.
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