DETERMINANTS OF PROFITABILITY OF DIGITAL MARKETING COMPANIES IN INDIA USING SCP MODEL
Keywords:
Profitability, Digital Marketing, SCP MODEL, 2SLS MODEL, VIF-Variance Inflation FactorAbstract
The purpose of this paper is to examine the determinants of profitability of 25 Digital marketing Companies in NSE over the five – year period of 2018 to 2022. In this study, The Structure- Conduct-Performance model is used to trace the causes of industry performance. It is based on a model of Cause and Effect: Industry financial Performance is caused by the competitive Conduct of players in the industry; this Conduct is turn caused by the industry Structure. To be successful and remain in business, both profitability and growth are important and necessary for a company to survive and remain attractive to investors and analysts.
In this study, two models will be used VIF (Variance Inflation factor) to test multi-collinearity using all Independent Variables and A 2SLS model test the proposed relationships between independent and dependent variables. This method takes into account the role of the instrumental variable while calculating the effect of the independent variable on the dependent variables.
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