廣告被公司視為是增加公司價值的重要投資，因為廣告的影響力廣大，不只可以吸引到消費者，更可以直接吸引到公司投資人；然而公司隨時都能夠執行預設的廣告支出嗎？有沒有任何情況會迫使公司不得不降低廣告支出，因而降低公司的價值創造呢？這篇研究試圖去了解造成公司降低投資標準的主要原因---財務限制，在廣告創造價值的過程中所扮演的角色；過去的文獻告訴我們公司存在一個最適的廣告支出投資點，然而當財務限制發生時，公司礙於有限的可使用資金以及昂貴的外部資金，不得不去降低它的廣告投資量，此時公司的廣告支出便更難達到最適點，因而錯失了創造更多價值的機會。

SUMMARY
Advertising has been a useful investment for firms to increase its values. The power of advertising influences not only consumers, but also investors in the capital market as well. Though past literature has shown us that advertising can have a positive impact on value creation, questions have been raised that can firms always execute what they have planned to do in advertising? Are there situations where firms are hindered to go for value maximization? To figure out, this research sheds light on the moderating effect of financing constraints in the advertising-value relation. Since past evidences claim that there is an optimal investment point of advertising, empirical results of this research come out that financing constraints trigger under-investment in advertising, therefore wear down the positive effect of advertising on firm value. That is, constrained firms earn fewer returns than unconstrained ones do.
Key words: advertising expenditure, financing constraint

INTRODUCTION
Ample literature explores the role of advertising expenditures on firm value creation. A host of evidences verify that advertising has investment-type features in which the more spending results in greater corporate values. Advertising can lead to value creation through two different paths: the direct and indirect effect. Direct effect of advertising means that investors may directly response to brand-related intangible assets built by advertising, and indirect effect indicates that consumers who are attracted by advertising can lead to incremental revenues and profits of a firm.

However firms do not always invest enough in advertising. The under-investment situation causes less allocation in firm values. Past literature suggests that there is an optimal point where firm values can be maximized, therefore under-investment in advertising may cause firms to earn less than they could have earned. Evidences tell us that firms tend to under-invest when they face financing constraints. Firms may bypass more opportunities when they have trouble allocating sufficient funds that they need and thus the competitive power comparing with other unconstrained firms decreases. Therefore, this research assumes constraints to be a negative moderator influencing the long-term advertising-value relationship. That is, though advertising can create values for firms, financing constraints can obstruct this positive impact on firm value.

MATERIALS AND METHODS
This study starts with a total sample where firms increase their advertising expenditure in any year comparing with previous year’s advertising expenditure between 1981 and 2014. Three major standards for sample selection are set. First, firms in the research sample should all have sufficient data in COMPUSTAT database and CRSP database. Second, firms with an initial ratio of advertising expenditure to sales and an initial ratio of advertising expenditure to total assets above 5% are selected as the research sample. Third, this research only picks up firms that have a percentage increase in advertising expenditure of at least 5% in a specific year. The final data consists of 6,290 firm-year observations with 2,193 firms.

This research sets the specific fiscal year end, where firms announce the annual financial statements, as the event day, and observes the following three-year abnormal stock returns of those firms. The abnormal returns are calculated by Fama and French three-factor model and Carhart four-factor model. The research tests the impact of financing constraints in the advertising-return relationship by separately observing abnormal returns from low constraints and high constraints subsamples. Besides, this research also computes the results of high-constrained subsample’s average return minus low-constrained subsample’s average return in a daily base. Last but not least, this research additionally adds firms’ previous year return on assets into consideration to control for past firm performance.

RESULTS AND DISCUSSION
Do advertising increases lead to better than the market abnormal returns in the long run, and is financing constraints accelerators or obstacles to the relation? This research answers the questions. First, the outcome from the empirical tests unanimously supports the long-term abnormal returns that advertising can generate. Second, the outcome of this research provides evidences that for advertising-intensive firms, the more constrained ones earn fewer abnormal returns than unconstrained ones do, and the difference is tested significantly.

The results of this research broaden the same positive advertising-value relation conclusion that advertising is useful for firms in the long run. Besides, literatures in both advertising and financing constraints have talked about the idea of under-investment, and financing constraints are very likely to be the major factor causing the under-investment behavior. Therefore, this research tries to figure out what will happen to the long-term value creation if financing constraints exist, and the result turns out to be that advertising is still useful though, firm performance dilutes because firms are forced to decrease investment levels in advertising.

CONCLUSION
This research uncovers the moderating role of financing constraints in the advertising-value relation. The result goes to constraints are harmful for value creation by advertising. Besides, this research also provides a clear evidence for firms on advertising decision making. That is, this research shows how the market underreacts to an advertising increase and the existence of financing constraints.

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