CAPITAL MARKET SIGNALS AND CORPORATE ADVERTISING STRATEGIES: AN EMPIRICAL ANALYSIS BASED ON THE SYNERGISTIC RELATIONSHIP BETWEEN STOCK PRICE VOLATILITY AND MARKETING CAPABILITY

Abstract

This paper conducts an empirical analysis of the data from non-financial listed companies on China’s A-share market between 2008 and 2023, exploring the impact of stock price volatility on corporate advertising strategies and examining the synergistic effects of corporate marketing capabilities and stock price volatility on these strategies. The study finds that stock price volatility significantly triggers changes in corporate advertising strategies, and there exists a synergy between marketing capabilities and stock price volatility in influencing these strategies. Within the context of stock price volatility’s impact on advertising strategies, there is heterogeneity related to the market environment and policy conditions in different regions, particularly pronounced in the western region, where stock price volatility has a more pronounced effect on advertising strategies. Furthermore, loss-making companies are more inclined to adopt intensified advertising strategies during periods of stock price volatility to address market pressures and investor expectations arising from external signals.