Advertising, Investor Attention and Stock Price Crash Risk

Abstract

The rapid development of the advertising industry fits the background of the rise of new Internet media, and its impact on the stock value of listed The rapid development of the advertising industry fits the background of the rise of new Internet media, and its impact on the stock value of listed companies has also attracted much attention from both theoretical and practical circles. This paper selects investor attention as a mediating variable to investigate the relationship and impact path of advertising investment and stock price crash risk. This paper selects 6115 data of listed companies in Shanghai and Shenzhen A-shares from 2013 to 2019 to construct a curvilinear mediation model, and use the hierarchical regression analysis to find that: there is an inverted U-shaped relationship between advertising input and stock price crash risk; advertising input positively affects investor There is an inverted U-shaped relationship between investor attention and stock price crash risk; advertising input has an indirect impact on stock price crash risk through the cur The contribution of this paper mainly lies in revealing the non-linear mechanism of advertising input's impact on stock price crash risk. The contribution of this paper mainly lies in revealing the non-linear mechanism of advertising input's impact on stock price crash risk by exploring the monitoring and contagion effects of advertising under different input levels, which breaks through the previous research on the linear relationship between advertising, investor attention and stock price. The study also examines the impact of advertising input on stock price crash risk by exploring the monitoring and contagion effects of advertising under different input levels, which breaks through the previous research on the linear relationship between them, and also has important implications for the advertising decisions of managers of listed companies.