Lou, Dong (2013) Attracting investor attention through advertising. The London School of Economics and Political Science, London, UK.
- Published Version
Download (403Kb) | Preview
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. Next, 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:||Monograph (Working Paper)|
|Additional Information:||© 2013 The Author|
|Library of Congress subject classification:||H Social Sciences > HG Finance|
|Journal of Economic Literature Classification System:||G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing; Trading volume; Bond Interest Rates
G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies
|Sets:||Departments > Finance
Collections > Economists Online
|Date Deposited:||15 Nov 2013 12:50|
Actions (login required)
|Record administration - authorised staff only|