Forward-looking information disclosure tone, financing constraints and marketing expenditures

Chenggang Li, Ying Yan, Xiaodong Wang*, Shengnan Wan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Forward-looking information is often seen as private messages that managers deliver to the public, and a positive tone usually implies a positive signal from them. We use a sample of Shanghai and Shenzhen A-shares from 2011 to 2020 to examine the relationships between forward-looking information tone and company marketing expenditures. Our findings show that: first, forward-looking information tones contain valuable content that investors can comprehend, and the more positive the tone, the greater the marketing expenditures a company has. Second, this positive relationship is strengthened for companies that are more financially constrained. Finally, optimistic forward-looking messages can increase marketing expenditures in a greater magnitude for companies operating in the areas subject to a higher degree of marketisation.
Original languageEnglish
JournalAsia-Pacific Journal of Accounting & Economics
Early online date5 Dec 2023
Publication statusEarly online - 5 Dec 2023


  • Marketing expenditures
  • forward-looking information tone
  • external financing
  • financing constraints

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