Investor sentiment and advertising expenditure
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, fi...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2018
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| Online Access: | http://hdl.handle.net/20.500.11937/72554 |
| _version_ | 1848762780697493504 |
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| author | Mian, M. Sharma, Piyush Gul, F. |
| author_facet | Mian, M. Sharma, Piyush Gul, F. |
| author_sort | Mian, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T10:53:01Z |
| format | Journal Article |
| id | curtin-20.500.11937-72554 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:53:01Z |
| publishDate | 2018 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-725542021-01-05T08:07:07Z Investor sentiment and advertising expenditure Mian, M. Sharma, Piyush Gul, F. 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. 2018 Journal Article http://hdl.handle.net/20.500.11937/72554 10.1016/j.ijresmar.2018.08.005 http://creativecommons.org/licenses/by/4.0/ fulltext |
| spellingShingle | Mian, M. Sharma, Piyush Gul, F. Investor sentiment and advertising expenditure |
| title | Investor sentiment and advertising expenditure |
| title_full | Investor sentiment and advertising expenditure |
| title_fullStr | Investor sentiment and advertising expenditure |
| title_full_unstemmed | Investor sentiment and advertising expenditure |
| title_short | Investor sentiment and advertising expenditure |
| title_sort | investor sentiment and advertising expenditure |
| url | http://hdl.handle.net/20.500.11937/72554 |