Advertising and Investor Recognition of Banking Firms: Evidence from Taiwan

Tsai-Ling Liao, Hao-Chang Sung, Min-Teh Yu

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This study examines the effect of advertising expenditure on strengthening a firm's intangible capital and firm value by attracting the public on the firm's visibility and then investigates the role of advertising expenditures on a banking firm's market value, liquidity, and breadth of ownership. The empirical results find that the advertising has a significantly positive effect on banking firm's share value, liquidity, and institutional holdings. Consequently, this study concludes that advertising benefits banking firms through increased investor perceptions of such firms. In particular, the findings provide additional support for the home bias phenomena, in which investors prefer to invest in familiar stocks.
Original languageEnglish
Pages (from-to)812-824
Number of pages13
JournalEmerging Markets Finance and Trade
Issue number4
StatePublished - Apr 2016


  • investor recognition; advertising expenditures; market valuation; stock liquidity

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