Advertising, breadth of ownership, and liquidity

• 成果类型: Article
• 署名作者: Grullon, G; Kanatas, G; Weston, JP
• 署名单位: Rice University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhg039
• 发表日期: 2004
• 页码: 439
• 关键词: Market microstructure; Nasdaq; prices; patterns; BEHAVIOR; ask

摘要

We provide empirical evidence that a firm's overall visibility with investors, as measured by its product market advertising, has important consequences for the stock market. Specifically we show that firms with greater advertising expenditures, ceteris paribus, have a larger number of both individual and institutional investors, and better liquidity of their common stock. Our findings are robust to a variety of methodological approaches and to various measures of liquidity. These results suggest that the investors' degree of familiarity with a firm may affect its cost of capital and consequently its value.