In this study, we examine how a firm's advertising and R&D affects the firm's β-risk and idiosyncratic risk, which are … empirical generalizations. (1) Advertising is significantly associated with lower β-risk for firms with lower, median and higher … β-risk. (2) R&D significantly increases β-risk for firms with median and higher β-risk firms. (3) Advertising is …

This paper brings empirical evidence that the positive effect of exposure to advertising on consumers' tendency to … previous studies that advertising intensity is an element in consumers' utility is due to the restrictive assumption that … consumers are risk-neutral. When this assumption is relaxed, we find that exposure to advertising does not have any direct …