Advertising and Investor Recognition of Banking Firms: Evidence from Taiwan. Issue 4 (2nd April 2016)

• Record Type: Journal Article
• Authors: Liao, Tsai-Ling; Sung, Hao-Chang; Yu, Min-Teh
• Is Part Of: Emerging markets finance & trade. Volume 52:Issue 4(2016)
• Page Start: 812
• Page End: 824
• Publication Date: 2016-04-02
• Subjects: investor recognition -- advertising expenditures -- market valuation -- stock liquidity; Balkan Peninsula -- Commerce -- Periodicals; Balkan Peninsula -- Foreign economic relations -- Periodicals; Europe, Central -- Commerce -- Periodicals; Europe, Central -- Foreign economic relations -- Periodicals; Europe, Eastern -- Commerce -- Periodicals; Europe, Eastern -- Foreign economic relations -- Periodicals; Turkey -- Commerce -- Periodicals; Turkey -- Foreign economic relations -- Periodicals; Asia -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; Eurasia -- Commerce -- Periodicals; Eurasia -- Foreign economic relations -- Periodicals; 382.05
• DOI: 10.1080/1540496X.2015.1117851
• Languages: English
• ISSNs: 1540-496X

Abstract

Abstract: This study examines the effect of advertising expenditure on strengthening a firm's intangible capital and firm value by attracting the public on the firm's visibility and then investigates the role of advertising expenditures on a banking firm's market value, liquidity, and breadth of ownership. The empirical results find that the advertising has a significantly positive effect on banking firm's share value, liquidity, and institutional holdings. Consequently, this study concludes that advertising benefits banking firms through increased investor perceptions of such firms. In particular, the findings provide additional support for the home bias phenomena, in which investors prefer to invest in familiar stocks.