Advertising, Visibility, and Stock Turnover

Authors

Keith Vorkink, Brigham Young University - Provo
Eric D. DeRosia, Brigham Young UniversityFollow
Glenn Christensen, Brigham Young University - Provo
Grant Richard McQueen, Brigham Young University - Provo

Keywords

stock turnover, advertising, visibility, behavioral finance, super bowl

Abstract

We further the understanding of cross-sectional differences in trading activity. Specifically, we link a firm’s visibility, as measured by advertising, to its stock turnover. First, we suggest three mechanisms (beyond simple awareness) capable of explaining how the repeated and consistent ads from well-known firms in the marketplace are linked to turnover. Second, using a data base of firms reporting advertising between January 1971 and December 2007, we regress average daily turnover within a year on annual ad spending for the year and find a positive and significant coefficient after controlling for extant determinants of turnover. Third, using a twenty year Super Bowl advertising event study, we again document a positive relationship between advertising and turnover.

Original Publication Citation

McQueen, Grant, Keith P. Vorkink, Eric D. DeRosia, Glenn L. Christensen (2011), “Advertising, Visibility, and Stock Turnover,” Financial Management Association European Conference. Porto, Portugal.

BYU ScholarsArchive Citation

Vorkink, Keith; DeRosia, Eric D.; Christensen, Glenn; and McQueen, Grant Richard, "Advertising, Visibility, and Stock Turnover" (2011). Faculty Publications. 8362.
https://scholarsarchive.byu.edu/facpub/8362

Document Type

Conference Paper

Publication Date

2011

Publisher

Financial Management Association

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Associate Professor

Copyright Use Information

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