Lou, Dong ORCID: 0000-0002-5623-4338 (2014) Attracting investor attention through advertising. Review of Financial Studies, 27 (6). 1797 - 1829. ISSN 0893-9454
Full text not available from this repository.Abstract
This paper provides evidence that managers adjust firm advertising, in part, to attract investor attention and influence short-term stock returns. First, I show that increased advertising spending is associated with a contemporaneous rise in retail buying and abnormal stock returns, and is followed by lower future returns. Second, I document a significant increase in advertising spending prior to insider sales and a significant decrease in the subsequent year. Additional analyses suggest that the inverted V-shaped pattern in advertising spending around insider sales is most consistent with managers' opportunistically adjusting firm advertising to exploit the temporary return effect to their own benefit.
Item Type: | Article |
---|---|
Official URL: | http://rfs.oxfordjournals.org/ |
Additional Information: | © The Author and Oxford University Press |
Divisions: | Finance |
Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
JEL classification: | G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General |
Date Deposited: | 23 May 2014 13:13 |
Last Modified: | 04 Dec 2024 19:18 |
URI: | http://eprints.lse.ac.uk/id/eprint/46330 |
Actions (login required)
View Item |