Customer Satisfaction, Systematic Risk and Cost of Capital

• Main Authors: Wen-chieh Wu, 吳文傑
• Other Authors: Miao-Ling Chen
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/tjrtjp

碩士 === 國立中山大學 === 財務管理學系研究所 === 95 === It was an age of pursuing customer satisfaction since 1980, and moreover chasing customers` value in 21century. But how can customer satisfaction improve firm`s value? This article combines marketing and finance together through analyzing interaction between customer, systematic risk and cost of capital. The empirical evidence presented in this article implies that customer satisfaction can surely lower systematic risk and there is nonlinear relationship between CSI and systematic risk. Comparing the results for the service and nonservice industry sectors, we observe that, customer satisfaction has a greater effect on systematic risk of service sectors. In addition to satisfaction, the analysis also include advertising expense as another explanatory variable and reveals that when putting satisfaction and advertising expense into model together, systematic risk will be the lowest. When using lisrel model, it shows that customer satisfaction can lower cost of capital through cost of debt and equity together then maximize shareholder`s value.