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Full-Text Articles in Business
Does Disclosure Of Advertising Spending Help Investors And Analysts?, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Does Disclosure Of Advertising Spending Help Investors And Analysts?, Sungkyun Moon, Kapil R. Tuli, Anirban Mukherjee
Research Collection Lee Kong Chian School Of Business
Publicly listed firms have the discretion to disclose (or not) advertising spending in their annual (10-K) reports. The disclosure of advertising spending can provide valuable information because advertising is a leading indicator of future performance. However, estimates of advertising spending are available from data providers, arguably mitigating the need for its formal disclosure. This study argues that firms’ disclosure of advertising spending provides more complete and public information and therefore lowers investor uncertainty about future firm performance (idiosyncratic risk). Empirical analyses show this effect is largely driven by the negative effect of disclosure of advertising spending on analyst uncertainty. Consistent …
Ira Disclosure Framing Effects On Purchase Decisions, Eugene Cautillo, Mary M. Long
Ira Disclosure Framing Effects On Purchase Decisions, Eugene Cautillo, Mary M. Long
Atlantic Marketing Journal
This research examines the use of disclosures included in IRA advertisements to determine their impact on purchase decisions. Disclosures were manipulated through different framing language to examine the investor’s risk perception. The Hayes Process Model was used to test the significance of investor risk perception and risk propensity (investor’s likelihood to act on risk perception) related to framing manipulation and ultimately, the purchase decision. The level of risk propensity was then used to assess the impact on the purchase decision for investors with varying sophistication levels. Additionally, the investor’s sophistication level, determined via a series of investment questions, was also …