Wards accounting seminar: Mr Yin Wang on advertising and disclosure

Wards accounting seminar: Mr Yin Wang on advertising and disclosure

Issued: Thu, 14 Dec 2017 15:41:00 GMT

Date: Thursday 21 December 2017
Time: 12noon - 1:30pm
Venue: Room305, Level 3, Main (Gilbert Scott) Building
Category: Academic events
Audience: Academic staff and doctoral students
Admission: Free
Registration: N/A

Mr Yin Wang of HEC Paris will present his research entitled 'Advertising and Disclosure: Do Firms Time Advertising during Disclosure Periods?' at Adam Smith Business School on Thursday 21 December 2017.

Abstract:
Using a large sample of monthly advertising data, I examine whether U.S. firms use advertising to increase visibility and attract investor attention to their disclosures. I find that firms schedule some advertising to appear around their SEC 10-K and 10-Q filings, consistent with advertising being used to attract investor attention during disclosure periods. This effect is stronger for firms reporting good news, for firms with high individual investor ownership, for firms in the retail industry, and for young firms. In addition, firms increase their advertising through media with broad target audiences and through business-to-consumer media when they submit 10-K and 10-Q filings. Furthermore, I use the SEC acceleration filing rule as an exogenous shock to the timing of firms’ mandatory disclosures. Using a Difference-in-Difference design, I find that advertising expenditures co-move with the change in timing of the 10-K filings. Parallel trend analysis and falsification test results further validate this causal inference that firms’ mandatory disclosures cause the timing of firms’ advertising. Finally, the results also suggest that firms with high information asymmetry and lower market liquidity advertise more when they have disclosures. Taken together, the findings provide new evidence about the real effects of disclosure on firm-specific investment, showing that firms consider disclosure timing when making advertising investment decisions.

Biography:
Yin Wang is a PhD Candidate in Accounting at HEC Paris, and he was Visiting Research Scholar at the University of Michigan's Ross School of Business in 2017. His main research area lies in disclosure and its real effects. Other research interests include insider trading, earnings management, regulation and corporate governance. In conducting his research, Yin relies mainly on empirical-archival methods, and he is passionate about using novel data and exploring unique settings to answer new questions.


Please email Christine Haley at business-school-research@glasgow.ac.uk for further information on this event.

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