연구홍보포털

논문 초록 (Abstract)

This paper investigates the nonlinear value relevance of advertising exp enses in firms listed on Korean stock markets from 2003 to 2011. This st udy also categorizes the sampled data into several groups to examine the value relevance function of advertising expenses. The empirical finding s of this paper show that advertising expenses has an inverted U-shaped relationship with enterprise value in various subgroups belonging to KO SPI markets, big firms, small and medium firms, and low technology firms classified by Himmelberg and Petersen (1994). The empirical results als o provide the evidence that advertising expenses is nonlinearly associat ed with enterprise value with a U-shaped function in total sample firms, KOSDAQ firms, high technology firms classified by Himmelberg and Peters en (1994), and the high and low technology firm groups divided by R &D intensity.These results support the hypothesis of this study (H : Advertising expenses has nonlinear value relevance in Korean stock mar kets). The empirical findings of this study reveals that the value relev ance shape of advertising expenses differ in accordance with the charact eristics of individual firms.