Kang, SanggyuChung, Chune YoungChoi, Wonseok2023-03-232023-03-232022This 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.https://hdl.handle.net/11274/14716https://doi.org/10.1016/j.ribaf.2022.101698Article originally published in Research in International Business and Finance, 62, 101698. English. Published online 2022. https://doi.org/10.1016/j.ribaf.2022.101698Marketing 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.en-USAdvertising spendingInstitutional investorsInvestor heterogeneityKorean marketPost-Print