Marketing and advertising is a fundamental factor in the deployment of companies’ name and increase their profits, Therefore, this study aimed to identify whether there is an impact between Marketing and advertising expenses and profitability in industrial medicines public shareholding companies listed in the Amman Stock Exchange.
The sample of the study included the industrial pharmaceutical companies listed in the Amman Stock Exchange, during the period between 2009-2013. To achieve the purposes of the study, and to analyze the data extracted from the annual statements, the researcher used simple linear regression method.
The results of the study showed an impact of marketing and advertising expenses on the profitability of the pharmaceutical companies.
The paper provides a useful guide for the users of financial statements of Marketing and Advertising, since it provides information on possible effect on the company’s performance. In addition, the paper fills an information gap by addressing a range of valuation issues on Marketing and Advertising and offers relevant information guidance to the users of financial statements.