Effect of stockholder relationship management on market value of firms (case study: banking and financial services industry in the Tehran Stock Exchange)

Abstract

Marketing has significantly changed during the past two decades. The orientation of a single interactions spectrum toward different types of modern dynamic relationship represents an approach that has been considered in the field of marketing which fulfils the expectations of the implementation of related programs. The issue of stockholders' performance as one of the marketing groups has been ignored. This study is intended to examine the effect of stockholders relationship management on the market value of firms. Stock holders relationship management is considered in different dimensions of relationship orientation, relationship evaluation mode, trust, commitment and reciprocity. Indicators of market value include stock return, stock liquidity, price to earnings ratio, and market capitalisation. Firms listed in the banking and financial services industry in the Tehran Stock Exchange were selected as the research population. All of the firms were investigated without sampling for a seven year period (2009-2016). Structural equations modelling method and AMOS software were used to analysis the research hypotheses. The results of the study show that stock holders relationship management has a significant positive effect on stock liquidity, stock return and price to earnings ratio. But it did not have a significant effect on the market capitalisation.