Dataset (Vasilchenko A.E.)

This research studies the effect of advertising on stock returns both in the short run and in the long run. We find that a greater amount of advertising is associated with a larger stock return in the advertising year but a smaller stock return in the year subsequent to the advertising year (during COVID-19).
A firm's advertising spend can be an important signal to investors as it indicates a firm's ability to deploy the resources needed to attract new customers and/or enhance its value proposition for existing customers, but this conclusion is not always the same for firms with "strong" and " weak" brands. However, this article focuses on the impact of the economic downturn due to the pandemic on the activities of companies, since such a situation can lead to a reshuffling of forces in the market.
Conducting research in this area at the intersection of marketing and finance will definitely be a significant contribution, giving an answer to the question of whether companies should increase investment in marketing strategies in difficult times, and, if the answer is yes, this will be another powerful argument in in favor of justifying advertising spending by consumer firms during such crises, even if this strategy seems painful in the face of financial pressure and there is an outflow among consumers, the main stakeholders of consumer market firms.