This research paper from the **Marketing Science Institute** investigates the financial implications of a firm's **strategic emphasis** on either **value creation** (innovation, R&D) or **value appropriation** (extracting profits, advertising, brand building). Authors Natalie Mizik and Robert Jacobson examine how shifts in this emphasis, measured by the ratio of advertising to R&D expenditures relative to assets, affect **stock return**. Their findings suggest that investors generally favor an increased focus on **value appropriation**, particularly when a firm's earnings are strong, even in high-technology sectors. However, the study also notes that in certain situations, such as when a firm is performing poorly or has already heavily invested in value appropriation, emphasizing **value creation** is viewed more positively by the market.