文章基本信息

标题：Are Internal Cash Flows the Source of Advertising Expenses?: Evidence from Korea
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作者：Gee Jung Kwon
期刊名称：International Journal of Business and Management
印刷版ISSN：1833-3850
电子版ISSN：1833-8119
出版年度：2011
卷号：6
期号：10
页码：37
DOI：10.5539/ijbm.v6n10p37
出版社：Canadian Center of Science and Education
摘要：The study examines the relationship between advertising expenses and internal cash flow using 8,346 sample companies listed on the Korean stock markets over the period from 1999 to 2008. For the precise test, the study further partitions the total samples into two or four portfolios based on stock markets, firm size, and the magnitude of advertising intensity (advertising expense/total sales). The main findings of this study are twofold; First, internal cash flow is significantly associated with advertising expenses in subgroups such as high advertising firms and firms listed in KRX. This result suggests that internal cash flow may be one of the core sources of advertising expenses. Second, the relation degree of internal cash flow and advertising expenses is mainly depending on the magnitude of advertising expense intensity. It shows more significantly positive relationship for firms with higher advertising expenses intensity than for firms with lowers. The important contribution of this paper is exploring the sources of advertising investment in listed Korean stock market and this study is one of limited number of studies that investigates the main source of advertising expense in Korean stock markets.