EconPapers    
Economics at your fingertips  
 

DISTRIBUTION CHANNELS AND FINANCIAL ADVERTISING IN THE ITALIAN ASSET MANAGEMENT MARKET

Riccardo Ferretti, Emanuela Giacomini and Francesca Pancotto
Additional contact information
Emanuela Giacomini: Department of Economics and Law, University of Macerata, Via Crescimbeni 14, 62100 Macerata, Italy

Journal of Financial Management, Markets and Institutions (JFMMI), 2022, vol. 10, issue 02, 1-22

Abstract: Advertising has a major effect on individual investors’ decisions. Financial instruments tend to be advertised more when market sentiment is high, as investors are more willing to buy. Mechanisms affecting the relationship between market sentiment and advertising activity remain unexplored in the finance literature. Using a novel dataset of advertisements for mutual and exchange-traded funds from the main Italian financial newspaper, we show that the effect of market sentiment on financial advertisements depends upon the distribution channel. Sentiment matters only for products directly traded by the investors, such as exchange-traded funds. Conversely, for financial products — like mutual funds — distributed through a captive distribution network (bank branches and tied agents), financial advisers’ actions mitigate the effect of market sentiment on advertising activity. Overall, our findings provide some evidence of the persuasive power of financial advisers in investors’ decisions, which arguably requires increased attention from financial market regulators.

Keywords: Market sentiment; advertising; mutual funds; banks; ETF (search for similar items in EconPapers)
JEL-codes: G14 G20 G40 G41 M37 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2282717X22500062
Open Access

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jfmmix:v:10:y:2022:i:02:n:s2282717x22500062

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2282717X22500062

Access Statistics for this article

Journal of Financial Management, Markets and Institutions (JFMMI) is currently edited by Santiago Carbo-Valverde

More articles in Journal of Financial Management, Markets and Institutions (JFMMI) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-04-08
Handle: RePEc:wsi:jfmmix:v:10:y:2022:i:02:n:s2282717x22500062