Advertising, attention, and financial markets

DOI:	https://doi.org/10.2139/ssrn.2544294
URL:	https://papers.ssrn.com/sol3/papers.cfm?abstract_i...
Dokumenttyp:	Arbeitspapier
Erscheinungsjahr:	2019
Titel einer Zeitschrift oder einer Reihe:	SSRN Working Paper Series
Ort der Veröffentlichung:	Rochester, NY
Verlag:	SSRN
Auflage:	Rev.
Sprache der Veröffentlichung:	Englisch
Einrichtung:	Außerfakultäre Einrichtungen > GESS - CDSB (BWL) Fakultät für Betriebswirtschaftslehre > Internat. Finanzierung (Ruenzi 2009-)
Fachgebiet:	330 Wirtschaft
Abstract:	Using daily advertising data, we analyze short-term effects of advertising on investor attention and on financial market outcomes. We develop a new proxy for investor attention based on companies' Wikipedia page views and show that advertising has a positive impact on investor attention, but only little impact on turnover and liquidity. Most importantly, short-term stock returns are not influenced by advertising. Further results suggest that previous findings of a positive relation between advertising and returns are due to reverse causality. Thus, the belief that stock prices can be temporarily inflated via advertising is misguided.