How do heterogeneous institutional investors influence corporate advertising decisions?

Date
2022
Authors
Kang, Sanggyu
Chung, Chune Young
Choi, Wonseok
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Abstract

Marketing increases firm value; therefore, it is imperative to determine the factors affecting corporate marketing decision processes. Considering that the current understanding of these factors is limited, this study examines institutional investors’ effects on Korean firms’ marketing decisions by focusing on advertising spending. We present evidence that institutional investors may play a significant role in such decisions. Further, our results indicate that domestic institutional investors negatively influence advertising spending. In contrast, foreign institutional investors positively impact advertising spending regardless of their investment horizon. These results highlight the influence of external institutions’ characteristics in firms’ marketing decision processes.

Description
Article originally published in Research in International Business and Finance, 62, 101698. English. Published online 2022. https://doi.org/10.1016/j.ribaf.2022.101698
Keywords
Advertising spending, Institutional investors, Investor heterogeneity, Korean market
Citation
This is a post-print version of an article that is available at https://doi.org/10.1016/j.ribaf.2022.101698. Recommended citation: Kang, S., Chung, C. Y., & Choi, W. (2022). How do heterogeneous institutional investors influence corporate advertising decisions? Research in International Business and Finance, 62, 101698. This item has been deposited in accordance with publisher copyright and licensing terms and with the author’s permission.