The large literature on the impact of advertising on consumers and firm behavior in marketing and economics has tried to distinguish between the informative and the persuasive roles of advertising. The extant literature typically uses advertising expenditure and implicitly assumes that...

The stock price reactions to announcements of advertising services and providing services on the Internet are examined in this paper. The overall results suggest that Internet‐related activities are generally desirable. However, the results suggest that announcements of services advertising on...