Time-fixed Effects Research Articles

What drives consumers to post more photos in online reviews? A trait activation theory perspective

PurposeThis study aims to investigate the influence of the reviewed establishment’s price level and the user’s social network size and reputation status on consumers’ tendency to post more visual imagery content. Furthermore, it explores the moderating effects of user experiences and geographic distance on these dynamics.Design/methodology/approachThis study adopts a multi-method approach to explore both the determinants behind the sharing of user-generated photos in online reviews and their internal mechanisms. Using a comprehensive secondary data set from Yelp.com, the authors focused on restaurant reviews from a prominent tourist destination to construct econometric models incorporating time-fixed effects. To enhance the robustness of the authors’ findings, the authors complemented the big data analysis with a series of controlled experiments.FindingsThe reviewed establishments price level and the users reputation status and social network size incite corresponding motivations conspicuous display “reputation seeking” and social approval motivating users to incorporate more images in reviews. “User experiences can amplify the influence of these factors on image sharing.” An increase in the users geographical distance lessens the impact of the price level on image sharing, but it heightens the influence of the users reputation and social network size on the number of shared images.Practical implicationsAs a result of this study, high-end establishments can increase their online visibility by leveraging user-generated visual content. A structured rewards program could significantly boost engagement by incentivizing photo sharing, particularly among users with elite status and extensive social networks. Additionally, online review platforms can enhance users’ experiences and foster more dynamic interactions by developing personalized features that encourage visual content production.Originality/valueThis research, anchored in trait activation theory, offers an innovative examination of the determinants of photo-posting behavior in online reviews by enriching the understanding of how the intricate interplay between users’ characteristics and situational cues can shape online review practices.

Outbound tourism and outward foreign direct investment

Malik and Latif (2021, 2023) have conducted empirical research that demonstrates a positive relationship between Chinese outbound tourism and China's outward foreign direct investment. However, their studies possess significant flaws. Firstly, they fail to account for the heteroscedasticity of random errors, yielding flawed statistical inferences. Secondly, the control variables lack bilateral attributes between countries and overlook time-fixed effects, resulting in omitted endogeneity. Thirdly, their regressions inadvertently exclude a substantial number of observations due to missing values of the independent variable, introducing sample selection biases. This article aims to address these concerns by reanalyzing the empirical data and using a series of econometric methods to handle endogeneity issues. Our findings indicate that Chinese outbound tourism does not significantly influence China's outward foreign direct investment.

THE IMPACT OF ENVIRONMENTAL POLICIES ON CHINESE ENTERPRISES: A COMPARATIVE ANALYSIS OF RESOURCE TAXATION AND ESG ASSESSMENT ON THE FIRM PERFORMANCE AND PRODUCTION BEHAVIOR OF HEAVY POLLUTING ENTERPRISES

This paper investigates and compares the impact of environmental policy and ESG scores in Chinese publicly listed firms. Over the past few years, China has placed greater emphasis on promoting environmental preservation and sustainable growth. It provides an interesting policy system setting for the present research because as a socialist nation, the Chinese government wields significant influence in policymaking. The sample for analysis is 1,117 listed firms in the heavy pollution industry, and the data involves their financial performance and environmental actions between 2012 and 2020. Utilizing time fixed-effects models, lagged effects models, and OaxacaBlinder decomposition, our analysis reveals a robust positive association between environmental policy and financial performance. Additionally, we identify a noteworthy positive implication of ESG scores on both financial and environmental performance. Overall, our evidence suggests that the influence of ESG ratings is prominently stronger than that of policy. This may suggest that policies seem to have limited direct effects on companies, whereas ESG ratings, influenced by capital investments, play a more substantial and beneficial role in enhancing overall corporate performance in these domains.

Effects of Acute Beetroot Juice and Sodium Nitrate on Selected Blood Metabolites and Response to Transient Ischemia: A Crossover Randomized Clinical Trial

BackgroundModification of the nitrate (NO3)–nitrite (NO2)–nitric oxide (NO) pathway can be induced by oral intake of inorganic NO3 (NIT) or NO3-rich products, such as beetroot juice (BRJ). ObjectivesThe primary aim of this study was to evaluate the plasma changes in betaine, choline, trimethylamine (TMA), trimethylamine N-oxide (TMAO), and NO3/NO2 (NOx) concentrations over 4 h after single oral ingestion of NIT or BRJ. The flow-mediated skin fluorescence (FMSF) method was applied to measure the changes in nicotinamide adenine dinucleotide reduced form (NADH) in response to transient ischemia and reperfusion. We hypothesized that various sources of NO3 may differently affect endothelial and mitochondrial functions in healthy human subjects. MethodsIn a randomized crossover trial, 8 healthy young adults ingested 800 mg NO3 from either NIT or BRJ on 2 separate days with ≥3 d apart. Venous blood samples were collected every hour, and FMSF determination was applied bihourly. ResultsPlasma betaine and choline concentrations peaked at 1 h after BRJ ingestion, and remained significantly higher than baseline values at all time points (P < 0.001 and P < 0.001, compared to preingestion values). Over time, BRJ was more effective in increasing NOx compared with NIT (fixed-trial effect P < 0.001). Baseline fluorescence decreased after both NIT and BRJ consumption (fixed-time effect P = 0.005). Transient ischemia and reperfusion response increased because of NO3 consumption (fixed-time effect P = 0.003), with no differences between trials (P = 0.451; P = 0.912; P = 0.819 at 0, 2, and 4 h, respectively). ConclusionsAcute ingestion of BRJ elevated plasma betaine and choline, but not TMA and TMAO. Moreover, plasma NOx levels were higher in the BRJ trial than in the NIT trial. Various sources of NO3 positively affected endothelial and mitochondrial functions.This trial was registered at clinicaltrials.gov as NCT05004935.

An investigation of the influencing factors of value added tax collection effectiveness in EU Member States

AbstractTax evasion is reducing the revenues of public budgets of many European Union (EU) Member States (MS). To improve the effectiveness of tax collection, during the last decade authorities in several MS have taken measures to reduce the value added tax (VAT) gap (i.e., revenue received as a percentage of theoretical liability). In the Central and Eastern European region, VAT gap reduction measures have been implemented effectively in Hungary and Poland, whereas in Romania the effectiveness of these measures is very low: Romania has been the worst-performing EU MS in collecting VAT for more than 10 years. Our study analyses the factors influencing this VAT gap. Our analysis relied mainly on a fixed effects panel regression model, using for a balanced panel an individual and time fixed-effects with cluster-robust standard errors model, and for the unbalanced panel the fixed-effects regression with individual-specific slopes. Our results show that the size of the VAT gap is primarily influenced by five variables: the transparency index, the tax collection ratio, the law enforcement index, the VAT revenues ratio and the digitisation index.

How does the digital economy impact sustainable development? —An empirical study from China

With the rapid advancement of contemporary information technology, the profound amalgamation of the digital and real economy bestows a novel impetus to attain sustainable development. This study constructs the Cobb-Douglas production function from the perspective of cost minimization and combines it with the new economic geography to explore the internal relationships among the digital economy, industrial agglomeration, and sustainable development. Based on panel data from 30 Chinese provinces spanning 2015 to 2021, this study establishes a time-fixed effects model, a mediation effect model, and Shapley Additive Explanations, thereby analyzing the impact and action path of the digital economy on sustainable development and investigating the heterogeneity in regional and industrial agglomeration patterns. These findings indicate that digital economy has a significant positive effect on sustainable development. Industrial agglomeration is an important way for the digital economy to promote sustainable development. Simultaneously, an inverted U-shaped relationship exists between digital economy and industrial agglomeration. Furthermore, the positive effect of the digital economy on sustainable development in the eastern and western regions is more significant than in the northeastern and central regions, and the effect of specialized agglomeration is significantly better than that of diversified agglomeration. Therefore, applying industrial agglomeration and perfecting digital economic laws and regulations and governance rules should be used to give full play to the digital dividend, promote sustainable development, and realize the harmonious development of the economy, society, and environment.

Effects of bid protests against government agencies on firm performance: Role of interorganisational relationship

Government contracting officers (purchasing agents) are imperfect actors who may distort the procurement processes due to their individual preferences or biases. As a means of adjudicating this issue, firms may file legal protests against them. While previous studies analysed the effects of monitoring behaviour on procurement outcomes, the underlying mechanisms remain obscure. We overcome this limitation by leveraging interorganisational relationship mechanisms to explore how protests against government agencies affect firm performance. Using data from 2001 to 2019 encompassing bid protests and firm government procurement activities, we conduct panel regressions with firm and time fixed-effects and find that sustained protests improve firm performance. This effect is more pronounced when government agencies’ business becomes more dependent on protesting firms. In contrast, non-sustained protests had no effect on firm performance. Our findings highlight different government agencies’ reciprocating responses to firm protests and how they influence firm performance.

SDG7 and renewable energy consumption: The influence of energy sources

The transition to renewable energy poses a significant contemporary challenge. To address this, understanding the determinants of this transition is pivotal. This study examines renewable energy consumption in the Eurozone from 2000 to 2019 using panel data analysis and the Driscoll-Kraay technique with time-fixed effects. Two models test: one with aggregated energy production data and another with disaggregated data. Confirming existing literature, a strong inverse association emerges between GDP and renewable energy consumption. A negative relationship arises between Foreign Direct Investment (FDI), energy imports, and renewable energy consumption. Moreover, a direct, robust correlation exists between R&D expenditure and renewable energy consumption. When comparing the two models, the consumption of renewable energy shows a significant association with both the overall volume of electricity production and volumes differentiated by energy sources. Notably, the relationship proves more pronounced in the disaggregated data model. Disaggregated data by energy type provides higher explanatory power, underscoring its value for future studies. Consequently, this study underscores the heightened accuracy and reliability of using disaggregated energy production data in understanding the renewable energy transition.

The role of foreign-owned entities in building economic resili-ence in times of crisis: The case of European digital and technologically-intensive firms during the Covid-19 pandemic

Research background: Over the decades, foreign-owned entities (FOEs) have become an important part of the economic landscape considered as behemoths of globalisation, but also transmitters of positive effects such as technology or know-how spillovers. In times of volatility and uncertainty, firms’ contribution to building a resilient economy is at the top of the public agenda. Purpose of the article: The purpose of the article is two-fold. Firstly, we test, how FOEs perform in this stressful time of volatility and uncertainty. Secondly, we examine the contribution to resilience by digital and technologically intensive sectors. Methods: The study utilises the Bureau van Dijk (BvD) Orbis firm-level database as a primary data source. The results are derived with the use of two econometric approaches. Firstly, we estimate a static model utilising the ordinary squares estimator. Secondly, we re-estimate the equations using a two-step System GMM estimator. It introduces a lagged dependent variable into the model and implements a correction for endogeneity among covariates by including instruments (in levels and differences). Findings &amp; value added: We use size, age, ownership, gearing, and intangibility as firms’ financial performance determinants, together with the sector-, country- and time-fixed effects. FOEs compared to domestic ones generated a higher revenue growth rate. In times of crisis high-tech and digital firms are more resilient. However, ownership does not matter in this respect. We contribute to the discussion about functions performed by FOEs in crisis and turbulent times, in which resilience issues are on top of the agenda. Our research intends to bridge the gap between the performance of FOEs, micro-level analysis, and resilience.

Measuring environmental awareness: An analysis using google search data

Environmental awareness is usually measured using surveys. This paper aims to offer an alternative measure: an Environmental Awareness Index (EAI) constructed using Google search data provided by Google Trends. The benefits of using Google search data over surveys are that (i) they are less costly to obtain, (ii) they are available at high frequency, and (iii) they cover countries where no surveys are available. To test the validity of the proposed EAI, this study empirically assesses the impact of the computed index on individuals' pro-environmental behaviors using the Special Eurobarometer: Attitudes of European citizens towards the Environment data. Results show that the EAI is positively related to pro-environmental behaviors with a statistical significance at the one percent level. This finding stays robust in pooled OLS as well as in panel regression analysis when GDP, mean years of schooling, and population are included as control variables and when time-fixed effects are introduced. Further, the results confirm that environmental awareness is not stable over time and underline the importance of having a timely measure of environmental awareness at hand. Finally, the findings offer several practical implications for managers and policymakers, who will be able to use a timely measure of environmental awareness, assess and measure the impact of their policies aiming to raise environmental awareness as well as depict the type of behavior influenced by their policies.

Uptake of Biosimilar Among Privately Insured Patients Undergoing Infliximab Treatment.

Recent literature has found rapid uptake of short-acting filgrastim biosimilars but slower uptake of other biosimilars, such as infliximab, in both Medicare and privately insured enrollees. To describe patient, provider, and health plan characteristics associated with a switch to biosimilar among existing infliximab patients. We constructed a retrospective panel dataset of patients undergoing active infliximab treatments and the choice of infliximab drug for each infusion. We used mixed logit regression controlling for patient, provider, and health plan characteristics as well as time-fixed effects. Medicare Advantage and privately insured enrollees with evidence of active infliximab treatments between 2016 and 2020 (n=357,430). Our primary outcome of interest was to switch from infliximab originator to one of the infliximab biosimilars. Exposure variables of interest variables such as out-of-pocket, site of care, and in-network deductible. Our study found nominally low switching among existing infliximab originator users (3.4%). We found that patients who previously received 1 infliximab originator infusion were 63.7% more likely to switch to biosimilar compared with patients who previously received administration of 20 infliximab originators. We found that biosimilar's placement as health's plan preferred drug was attributed to higher likelihood of biosimilar use (odds ratio: 1.666; P -value=0.001). We did not observe any statistically significant effect among out-of-pocket amount or deductible with respect to switch to infliximab biosimilar. To encourage uptake and switch to biosimilar, policymakers should consider targeted policies that include leveraging health plan tools such as placement of biosimilar as preferred drug and aim to educate patients on the clinical equivalence between infliximab biosimilar and originator.

The impact of logistic environment and spatial spillover on agricultural economic growth: An empirical study based on east, central and west China.

To vigorously promote the integrated development and mutual adaptation of agriculture and logistics is an important way to realize agricultural modernization and rural revitalization. Along with the policy support of agricultural industry chain and the steady rise of the demand for agricultural products market, the total amount of agricultural product logistics continues to increase, and the growth rate remains stable. With the booming development of "Internet + agriculture" and e-commerce platform, agricultural logistic market welcomes a new round of development opportunities, reaching several trillion yuan. Compared with the developed countries, our agricultural product logistics is still far behind. At present, only 15% of vegetables and fruits and 30% of fresh meat have professional logistic transportation, while most of the rest are still in the state of local and primitive. The gap of logistic environment construction and logistic elements determines the difference in final benefit of agricultural products. The purpose of this study is to find out the influence of logistic elements on regional agricultural economic growth, and whether the influence between neighboring regions presents "the same prosperity", "the same loss" or "sharing weal and woe". Based on the panel data of the statistical yearbook of 31 provinces in China from 2005 to 2020, the spatial Durbin model was constructed under the spatial weight matrix of economic distance and economic geographical distance to conduct empirical analysis, and the internal factors of logistics industry, factor spillover effect and its impact on agricultural economic growth were studied. Results showed that: (1) considering economic distance factor, the spatial coefficient of the time-fixed effects model passed the significance test in eastern China. Considering economic geographic distance factors, the individual and double fixed effect models passed the significance test in central China, and all models passed the significance test in western China. (2) From the perspective of logistic infrastructure, AVLFA, HM, TN and RM had a positive effect on the growth of agricultural economy in eastern China, but LIAV is on the contrary. AVLFA had a positive effect on agricultural economic growth, but TN was on the contrary in central China. In western China, LIAV and TN promoted agricultural economy while HM and RM held back it. From the perspective of the volume of logistics activity, both eastern and central regions did not pass the significance test, but FA was tested by the double fixed effect model and showed negative in western China. From the perspective of control variables, FU, AO and PT all promoted agricultural economy in eastern China, and FU and AO did the same in central and western China. PT was invalid in central regions and hindered agricultural economy in western China, which was different. From the perspective of spatial spillover effect decomposition, the eastern region presents "one prosperity and all prosperity, and sharing weal and woe", while the central and western regions present "one prosperity and all prosperity, and one lost and all lost". At last suggestions as formulating the overall plan for the development of regional logistics, paying attention to regional differences and promoting coordinated development of logistics and agriculture in light of local conditions, and paying attention to the spatial spillover effect of elements were put forward.

Environment, social and governance (ESG) performance and CDS spreads: the role of country sustainability

Purpose Based on a sample of 1,872 firm-year observations for 573 global firms over the period 2013–2016, this study aims to provide empirical evidence on how environmental, social and governance (ESG) performance affects corporate creditworthiness as measured by credit default swap (CDS) spreads.Design/methodology/approach The authors use a regression model that accounts for country, industry and time-fixed effects as well as the instrumental-based Generalized Method of Moments (GMM) approach to dynamic panel modeling.Findings This study finds that improvements in ESG performance, especially in its governance pillar, reduce credit risk. Further, the authors uncover evidence suggesting the complementarity between ESG performance and country-level sustainability. The results indicate a stronger risk-mitigating impact of ESG performance in countries with higher sustainability scores.Practical implications In terms of practical implications, the findings suggest that corporations should strengthen governance frameworks and procedures to reduce credit risk, prior to embarking on environmental and social objectives. Further, the finding that country sustainability is an important determinant of CDS spreads suggests that country-level sustainability initiatives would not only help to preserve natural capital and promote social capital but also be beneficial to businesses and financial stability.Originality/value The study adds to the literature on the effects of ESG performance on credit risk by (1) utilizing a measure of ESG performance that considers the financial materiality of ESG issues across different industries; (2) utilizing a market-based measure of credit risk and CDS spreads; (3) examining the relative importance of ESG components to credit risk, rather than just the aggregate measure; and (4) assessing the influence of country sustainability on the relationship between ESG and credit risk.

Research on Financing Risk, Government Subsidy and Innovation Ability of New Energy Enterprises

New energy enterprises face high financing risks due to their long investment return period, large capital demand and high research and development risks, making it difficult to obtain funds for innovative activities. New energy enterprises, as the target of our country's key support, can alleviate the financing pressure through various policies subsidized by the government. Based on this, this paper takes the panel data of 126 new energy listed enterprises in China from 2009 to 2018 as samples, uses the time-fixed effect model to conduct regression analysis, and studies the relationship between financing risks, government subsidies and enterprise innovation capability of new energy enterprises. The study found that: financing risk has a significant negative impact on the innovation ability of enterprises; Government subsidies have a significant positive impact on the innovation ability of enterprises.

The link between advanced servitization, global distribution channels and the longitudinal performance of sales in international markets

PurposeThe research presented in this paper has been conducted to understand the impact of advanced-servitized-products on the longitudinal sales performance of manufacturing companies across international markets. The research strives to understand how the onsite presence leverages this impact.Design/methodology/approachTo reach this objective, an empirical sample of more than 4,000 sales transactions covering the period 2010–2019 in 74 foreign markets was collected from a single high-tech manufacturer producing and selling servitized solutions. The authors use a time fixed-effects model to test the authors' theoretically deduced hypotheses.FindingsThe authors' find the proportion of advanced-servitized products to positively impact sales performance over time and that this relation is moderated by the choice of international distribution channel. As compared to direct exports, onsite presence and intermediaries present a positive and negative moderating effect, respectively.Originality/valueThe paper offers a rare look into the international sales performance of advance-servitized-products. This paper does so using a service-dominant logic, which is still scarcely used within the servitization literature, despite the logic's adequacy for the study of the market behavior of service-augmented products.

Tokyo's COVID-19: An urban perspective on factors influencing infection rates in a global city

This research investigates the relationship between COVID-19 and urban factors in Tokyo. To understand the spread dynamics of COVID-19, the study examined 53 urban variables (including population density, socio-economic status, housing conditions, transportation, and land use) in 53 municipalities of Tokyo prefecture. Using spatial models, the study analysed the patterns and predictors of COVID-19 infection rates. The findings revealed that COVID-19 cases were concentrated in central Tokyo, with clustering levels decreasing after the outbreaks. COVID-19 infection rates were higher in areas with a greater density of retail stores, restaurants, health facilities, workers in those sectors, public transit use, and telecommuting. However, household crowding was negatively associated. The study also found that telecommuting rate and housing crowding were the strongest predictors of COVID-19 infection rates in Tokyo, according to the regression model with time-fixed effects, which had the best validation and stability. This study's results could be useful for researchers and policymakers, particularly because Japan and Tokyo have unique circumstances, as there was no mandatory lockdown during the pandemic.

The Moderating Role of Environmental Information Disclosure on the Impact of Environment Protection Investment on Firm Value

The presence of a link between corporate environmental protection investment and firm value is essential for enterprises to have incentives to invest in environmental protection by themselves. How environmental information disclosure affects the relationship between environmental protection investment and firm value is also an issue worth exploring. This paper uses the regression model with the industry and time-fixed effects to examine the relationship between environmental protection investment and firm value of China’s A-share heavily and non-heavily polluting enterprises from 2010–2020, as well as the moderating role of environmental information disclosure. The empirical results show that (1) there is a significant U-shaped relationship between environmental protection investment and firm value, and (2) corporate environmental information disclosure has a moderating effect. Specifically, it has an “amplifying” effect on the relationship between environmental protection investment and firm value. If a company’s environmental protection investment is insufficient, overly transparent corporate environmental disclosure will exacerbate the decline in firm value. Once environmental protection investment is up to standard, adequate disclosure can contribute to an increase in firm value.

Income and Terrorism: Insights From Subnational Data

This paper first introduces a theoretical formalization connecting a polity’s income level to terrorism. Our framework can accommodate different underlying assumptions about individual- and society-level grievances, yielding competing hypotheses. We then construct a panel database to study terrorism for 1527 subnational regions in 75 countries between 1970 and 2014. Results consistently imply an inverted U-shape that remains robust to incorporating a comprehensive set of region-level covariates, region- and time-fixed effects, as well as estimating an array of alternative specifications. The threat of terrorism systematically rises as low-income polities become richer, peaking at GDP/capita levels of ≈ US$12,800 (in constant 2005 PPP US$), but then falls consistently above that level. This pattern emerges for domestic and transnational terrorism alike. While peaks differ by perpetrator ideology, the inverted U shape also prevails across ideology-specific subsamples. In sum, alleviating poverty may first exacerbate terrorism, contrary to much of the proposed recipes advocated since 9/11.

The Initial Relationship Between the United States Department of Health and Human Services' Digital COVID-19 Public Education Campaign and Vaccine Uptake: Campaign Effectiveness Evaluation.

Over 1 million people in the United States have died of COVID-19. In response to this public health crisis, the US Department of Health and Human Services launched the We Can Do This public education campaign in April 2021 to increase vaccine confidence. The campaign uses a mix of digital, television, print, radio, and out-of-home channels to reach target audiences. However, the impact of this campaign on vaccine uptake has not yet been assessed. We aimed to address this gap by assessing the association between the We Can Do This COVID-19 public education campaign's digital impressions and the likelihood of first-dose COVID-19 vaccination among US adults. A nationally representative sample of 3642 adults recruited from a US probability panel was surveyed over 3 waves (wave 1: January to February 2021; wave 2: May to June 2021; and wave 3: September to November 2021) regarding COVID-19 vaccination, vaccine confidence, and sociodemographics. Survey data were merged with weekly paid digital campaign impressions delivered to each respondent's media market (designated market area [DMA]) during that period. The unit of analysis was the survey respondent-broadcast week, with respondents nested by DMA. Data were analyzed using a multilevel logit model with varying intercepts by DMA and time-fixed effects. The We Can Do This digital campaign was successful in encouraging first-dose COVID-19 vaccination. The findings were robust to multiple modeling specifications, with the independent effect of the change in the campaign's digital dose remaining practically unchanged across all models. Increases in DMA-level paid digital campaign impressions in a given week from -30,000 to 30,000 increased the likelihood of first-dose COVID-19 vaccination by 125%. Results from this study provide initial evidence of the We Can Do This campaign's digital impact on vaccine uptake. The size and length of the Department of Health and Human Services We Can Do This public education campaign make it uniquely situated to examine the impact of a digital campaign on COVID-19 vaccination, which may help inform future vaccine communication efforts and broader public education efforts. These findings suggest that campaign digital dose is positively associated with COVID-19 vaccination uptake among US adults; future research assessing campaign impact on reduced COVID-19-attributed morbidity and mortality and other benefits is recommended. This study indicates that digital channels have played an important role in the COVID-19 pandemic response. Digital outreach may be integral in addressing future pandemics and could even play a role in addressing nonpandemic public health crises.

The impact of corporate sustainability performance on advertising efficiency

Over the years several studies have reported a significant waste of advertising budget, a finding which calls for strategies to increase advertising efficiency. While some factors, such as brand extensions or an optimal marketing mix, have already been identified as relevant determinants of advertising efficiency, changes in consumer psychographics have so far been neglected. The current study fills this gap by investigating how the emerging awareness and demand for corporate sustainability serve as a contextual factor leveraging or hindering advertising efficiency. Furthermore, we investigate how advertising efficiency has changed across various industry sectors from 2010 to 2019. A two-step procedure was applied to analyze the secondary data of 1950 observations from 195 US firms in five industry sectors over a period of 10 years. The resulting time series of firm-specific multi-directional efficiency scores confirms that advertising efficiency varies over time, justifying the relevance of a dynamic perspective for analyzing advertising efficiency. Furthermore, in support of our main claim, the investigation of the relationship between advertising efficiency and the environmental, social and governance performance of firms over time using a time-fixed effects panel regression and a three-level hierarchical regression model confirm the significant impact of corporate sustainability performance on advertising efficiency. Interestingly, this effect varies among different industry sectors and not all corporate sustainability activities impact advertising efficiency to the same extent. The results not only emphasize the relevance of corporate sustainability performance in increasing advertising efficiency, but also guide marketers on strategic marketing decisions related to the allocation of advertising budget.