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What do Ads Buy? Daily Coverage of Listed Companies on the Italian Press

30 Pages Posted: 21 Dec 2009 Last revised: 7 Jan 2010

Marco Gambaro

Università degli Studi di Milano - DEPA

Riccardo Puglisi

University of Pavia; University of Milan - Centro Studi Luca d'Agliano (LdA)

Date Written: December 21, 2009

Abstract

We match data on the daily newspaper coverage of a sample of Italian listed companies with Nielsen data on the monthly amount of advertising that a given company has purchased on a given newspaper. Controlling for newspaper and company fixed effects, we show that newspaper coverage of a given company is positively related with the amount of ads purchased on that newspaper by that company. We also find that coverage of a company is higher the day after a press release, but especially so on newspapers where more ads are purchased. This result on press releases is robust to controlling for ownership links between newspapers and companies, and - more generally - controlling for time invariant features of each company-newspaper pair, i.e. for (company × newspaper) fixed effects.

Moreover, coverage is correlated with past day absolute return and trading volume, and this relationship appears to be steeper for those newspapers where more ads are purchased.

Keywords: Media Bias, Advertising, Press Releases, Stock Returns, Italian Press

JEL Classification: K1, L2, N81

Suggested Citation

Gambaro, Marco and Puglisi, Riccardo, What do Ads Buy? Daily Coverage of Listed Companies on the Italian Press (December 21, 2009). Available at SSRN: https://ssrn.com/abstract=1526658 or http://dx.doi.org/10.2139/ssrn.1526658

Marco Gambaro

Università degli Studi di Milano - DEPA ( email )

Via Conservatorio, 7
I-20122 Milano
Italy
+39 02 5032 1501 (Phone)
+39 02 5032 1505 (Fax)

HOME PAGE: http://www.economia.unimi.it

Riccardo Puglisi (Contact Author)

University of Pavia ( email )

Corso Strada Nuova, 65
27100 Pavia, 27100
Italy

University of Milan - Centro Studi Luca d'Agliano (LdA) ( email )

Via P. Amedeo 34
Milano, Mi 20122
Italy

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