Nexus of Corporate Marketing Activity and Capital Structure : South East Asia and China
DOI:
https://doi.org/10.24269/ekuilibrium.v21i2.2026.pp404-423Keywords:
Corporate marketing activity, Capital structure, Marketing management incentives , China and Southeast Asia marketAbstract
This study examines the effect of corporate marketing activity (CMA) on debt and equity funding sources, as well as the moderating role of marketing management incentives in Southeast Asia and China. The observational data used in this study is 4,860 firm-years, consisting of financial statements of listed companies in Southeast Asia and China between 2017 and 2025. The data were analyzed using panel data regression, robustness tests, and two-stage least squares. The results show that CMA significantly reduces the use of debt and equity funding sources, and marketing management incentives strengthen this effect. Consistent with Pecking Order Theory and Agency Theory, this study demonstrates that effective CMA increases internal cash flow through increased sales and operational profitability, thereby reducing dependence on external funding. Well-designed incentives enhance marketing team performance, amplifying the negative effect of CMA on the use of debt and equity funds. These findings provide practical implications for managers optimizing marketing performance and internal funding, and for investors assessing a company's financial health and risk. This study also contributes to the literature by integrating CMA, capital structure, and incentive mechanisms in an emerging market context. Originality of this study lies in examining the relationship between corporate marketing activity and capital structure, disaggregated into debt funding sources and equity funding sources, and examining the moderating role of marketing management incentives in this relationship.
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