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Advertising and Asymmetric Information

Authors

  • Alexandre Ripamonti Professor, Advertising School, ESPM University, Sao Paulo, Brazil.

DOI:

https://doi.org/10.18046/j.estger.2023.167.5489

Keywords:

marketing-finance interface, asymmetric information, advertising, panel cointegration, S_2

Abstract

This research demonstrates that it is possible for investors to anticipate the effects of advertising campaigns. It examined the long-term relationship between advertising and asymmetric information based on the theories of value creation through advertising and market microstructure. We assume that asymmetric information and advertising have a positive and significant relationship. Data from corporations listed on a developing stock market for 57 quarters were analyzed. Advertising was defined as the relationship between selling expenses, and asymmetric information according to the Corwin-Schultz S_2 measure. The results were controlled for traditional determinants of finance. A long-term relationship was observed between advertising and asymmetric information, thus confirming the theoretical framework. The implications are related to the anticipation of short- and long-term effects resulting from advertising through asymmetric information and cointegration to study the phenomena of the marketing-finance interface; restrictions are related to the coverage of the sample.

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Published

2023-06-30 — Updated on 2023-11-21

Versions

Issue

Section

Research articles

How to Cite

Advertising and Asymmetric Information. (2023). Estudios Gerenciales, 39(167), 173-180. https://doi.org/10.18046/j.estger.2023.167.5489 (Original work published 2023)