@article{MAKHILLJET20126428550,
    title = {The Optimal Level of Advertising and Long-Run Equilibrium Relationship Between 
  Advertising and Profit: The Case Study of Iranian Sepah Bank},
    journal = {Journal of Economics Theory},
    volume = {6},
    number = {4},
    pages = {116-120},
    year = {2012},
    issn = {1994-8212},
    doi = {jeth.2012.116.120},
    url = {https://makhillpublications.co/view-article.php?issn=1994-8212&doi=jeth.2012.116.120},
    author = {Hamid,Nader and},
    keywords = {Bank,profitability,advertising intensity,Dorfman-Steiner condition,co-integration,Iran},
    abstract = {The existence of a long-run equilibrium relationship between advertising expenditures and sales revenues or profits suggests that firm’s decisions to fix advertising as a ratio of performance index (Dorfman-Steiner condition) might represent optimal behaviour. This study attempts to provide evidence for such a relationship between advertising expenditures and profit using a sample of monthly time series data in Sepah Bank over the period 2002-2008. The results show the existence of long-run equilibrium relationships between the bank profitability and advertising expenditure in the sample period. This suggests that in long-run the bank's advertising expenditure is in optimal level. The evidence also bears out the hypothesis of existence a two-way causation between advertising expenditures and profit of Sepah Bank in long-run.}
    }