Corporate Advertisements and the Investor Attention Effect: Evidence from Television Commercials

35 Pages Posted: 23 Jun 2017 Last revised: 7 Mar 2019

See all articles by Hiroyuki Aman

Hiroyuki Aman

Kwansei Gakuin University

Norihiro Kasuga

Konan University

Hiroshi Moriyasu

Nagasaki University

Date Written: June 22, 2017


This study examines investor attention effects of corporate advertisings on trading activities by using daily data from television commercials (CM) in the Japanese market. This provides us with insights regarding the nature of investor attention in terms of ad volume, content type, and repeated information. Primarily, our findings indicate that, consistent with the attention-grabbing effect, an abnormally high CM frequency is positively and significantly associated with trading turnover. We found CMs had no significant effects on stock price response. When considering television viewership volume, our results only partially support the attention effect. Second, advertised content is important. The attention effect is mainly driven by CMs that promote a specific product, rather than CMs that emphasize corporate brand image, indicating that investor attention responds to concrete, informative messages. Finally, the initial high-attention effect decays over the course of the same product CM’s repetition, consistent with the wear-out effect.

Keywords: corporate advertising, television commercial, investor attention, trading activity

JEL Classification: G11, G12, G14,

Suggested Citation

Aman, Hiroyuki and Kasuga, Norihiro and Moriyasu, Hiroshi, Corporate Advertisements and the Investor Attention Effect: Evidence from Television Commercials (June 22, 2017). Available at SSRN: or

Hiroyuki Aman (Contact Author)

Kwansei Gakuin University ( email )

Nishinomiya, Hyogo 662-8501
+81-798-54-6343 (Phone)

Norihiro Kasuga

Konan University ( email )

Kobe, Hyogo 658-8501

Hiroshi Moriyasu

Nagasaki University ( email )

Nagasaki, 850-8506

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