The Capital Market Implications of Product Market Advertising
thesisposted on 18.01.2019, 02:01 by THI NGOC DIEP AMANDA NGUYEN
Marketing actions have impacts on both consumer behaviour in the primary product market and investor behaviour in the capital market. Using a large sample of US firms, the thesis provides comprehensive evidence of the multi-faceted impacts of advertising, which extend beyond the traditional product market into the capital market. Advertising spending significantly affects investor behaviour, enriches the firm’s information environment and brings about a number of capital market benefits for the firm, including greater stock price informativeness (essay 1), a lower propensity for tax avoidance (essay 2) and ultimately a greater firm value (essay 3).