International Journal of Business and Economics Volume 23, No. 1 June, 2024

Financial ADs Intervention on Investors’ Investment Behaviour

Ganesh R

PG and Research Department of Commerce and Management Studies, St. Mary’s College, Sulthan Bathery, Affiliated to University of Calicut, India.

Thiyagarajan S

School of Business, Indiana University, USA.

Naresh G

Finance & Accounting, Indian Institute of Management Tiruchirappalli, India.

Abstract

Advertisement is considered one of the best practices any corporate follows to create publicity among the targeted audience. When a company floats its shares in the market there may be a need for advertisements to create publicity. Though standard finance theories state that investors’ decisions are always rational, emotional advertisements could tempt them to land a biased decision called ‘ad bias’. The present study examines that and the outcome of the study highlights that investors are least influenced by ad bias. However, a significant difference between day traders and long-term investors on company information and telecast captivity factor is established. When it comes to novice and experienced investors a significant difference is established between them on company, sustainability and on expected lines, past experience factors.

Keywords：Ad Bias, Advertisement, Informational ad, Marketing, and Stock market

JEL Classifications：G02, G14, M31, D83, G11

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