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What do ads buy? Daily coverage of listed companies on the Italian press

  • Marco GAMBARO

    ()

  • Riccardo PUGLISI

    ()

We match data on the daily newspaper coverage of a sample of Italian listed companies with Nielsen data on the monthly amount of advertising that a given company has purchased on a given newspaper. Controlling for newspaper and company fixed effects, we show that newspaper coverage of a given company is positively related with the amount of ads purchased on that newspaper by that company. We also find that coverage of a company is higher the day after a press release, but especially so on newspapers where more ads are purchased. This result on press releases is robust to controlling for ownership links between newspapers and companies, and –more generally- controlling for time invariant features of each company-newspaper pair, i. e. for (company × newspaper) fixed effects. Moreover, coverage is correlated with past day absolute return and trading volume, and this relationship appears to be steeper for those newspapers where more ads are purchased.

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File URL: http://wp.demm.unimi.it/tl_files/wp/2009/DEMM-2009_036wp.pdf
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Paper provided by Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano in its series Departmental Working Papers with number 2009-36.

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Date of creation: 09 Dec 2009
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Handle: RePEc:mil:wpdepa:2009-36
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  1. Rafael Di Tella & Ignacio Franceschelli, 2009. "Government Advertising and Media Coverage of Corruption Scandals," NBER Working Papers 15402, National Bureau of Economic Research, Inc.
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  10. Timothy Besley & Andrea Prat, 2006. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," American Economic Review, American Economic Association, vol. 96(3), pages 720-736, June.
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  13. Marco GAMBARO, 2004. "The evolution of public service television, methods of financing and implications for the consumer," Departmental Working Papers 2004-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
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  16. Lily Fang & Joel Peress, 2009. "Media Coverage and the Cross-section of Stock Returns," Journal of Finance, American Finance Association, vol. 64(5), pages 2023-2052, October.
  17. Gustavo Grullon, 2004. "Advertising, Breadth of Ownership, and Liquidity," Review of Financial Studies, Society for Financial Studies, vol. 17(2), pages 439-461.
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