Abstract
ABSTRACT Forward-looking information is often seen as private messages that managers deliver to the public, and a positive tone usually implies a positive signal from them. We use a sample of Shanghai and Shenzhen A-shares from 2011 to 2020 to examine the relationships between forward-looking information tone and company marketing expenditures. Our findings show that: first, forward-looking information tones contain valuable content that investors can comprehend, and the more positive the tone, the greater the marketing expenditures a company has. Second, this positive relationship is strengthened for companies that are more financially constrained. Finally, optimistic forward-looking messages can increase marketing expenditures in a greater magnitude for companies operating in the areas subject to a higher degree of marketisation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.