Recently, the level of interest in marketing expenditures and evaluating its productivity has been increased as well as the interest in marketing accountability. Although various efforts have been made for this purpose but still needed to investigate the relationship between marketing expenditures and institutional financial performance. This study aimed to test the relationship between marketing expenditures and the financial performance of banks and insurance companies listed on the Palestine Securities Exchange. A sample of historical data was chosen from the data of all banks and insurance companies listed on the Palestine Securities Exchange. Five banks and four insurance companies were chosen while three banks and two insurance companies were excluded because either recently established or recently included in the Palestine Securities Exchange. The study hypotheses were tested using simple linear regression analysis. The study concludes a strong positive relationship between marketing expenditures, total revenue and net profits of companies. A model from which to predict the net profits of companies and their revenues has been developed, it was also found that the impact of marketing expenditures on the revenues and profits of the banks is higher than the impact on profits and revenues of insurance companies.