Journal article
Investor sentiment and advertising expenditure
International Journal of Research in Marketing, Vol.35(4), pp.611-627
2018
Abstract
A strategic issue facing marketing managers is 'how much and when' to spend on advertising. We argue that investor sentiment in the stock market may influence advertising expenditure by affecting firms' ability to raise new funds. We show that during periods of low (high) investor sentiment, firms decrease (increase) their advertising expenditure, even though the effectiveness of advertising is greater (lower) during such periods. We also find that these results are stronger for financially constrained firms that rely more on external financing. Our findings suggest that marketing managers can improve the efficiency of their advertising expenditure by raising (reducing) it during periods of low (high) sentiment.
Details
- Title
- Investor sentiment and advertising expenditure
- Authors
- G. Mujtaba Mian (Author) - Zayed UniversityPiyush Sharma (Corresponding Author) - Curtin UniversityFerdinand A. Gul (Author) - Deakin University
- Publication details
- International Journal of Research in Marketing, Vol.35(4), pp.611-627
- Publisher
- Elsevier BV
- DOI
- 10.1016/j.ijresmar.2018.08.005
- ISSN
- 1873-8001
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679191602621
- Output Type
- Journal article
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