Around the Net
Does Ad Spending Boost Share Prices?
- Campaign, Thursday, February 11, 2016 7:23 AM
Advertising temporarily boosts a company's stock value and managers are opportunistically increasing marketing spend to raise share prices, according to research from the London School of Economics. Dong Lou, an associate professor of finance at the LSE, analysed publicly listed companies in the U.S. and found that the stocks of the top 10% of companies (ranked by year-to-year changes in ad spend) outperformed those at the bottom by 10% by almost 13% in the ranking year.
