對公司來說，廣告是公司用來與消費者溝通的一個重要工具，我們可以看到公司花大量的廣告預算，期望籍此來增加公司未來的現金流量。我們此篇研究主要的目的是探討「未預期」 的廣告支出增加對公司價值的影響。本研究從COMPUSTAT資料庫中篩選了1,501筆資料，共548家公司有未預期的廣告支出，時間是從1990年到2005年。另外，我們使用Fama and French的三因子模型以及Carhart的四因子模型來計算我們的3年及5年的長期異常報酬。
研究結果發現，在扣除市場報酬之後，這些大幅增加廣告預算的公司，在長期呈現負向顯著報酬。此外，我們也檢視了這些大幅增加廣告支出的廠商長期的營運績效，結果顯示，這些公司長期的營運績效與股票市場的結果一致。所以，即使公司未預期的增加廣告支出預算，對公司的長期績效與股價並沒有因此而有正向顯著的報酬，反而產生過度廣告的問題。

Advertising is one of important tools for firm to communicate with consumers. The purpose of this study to examine what firms long-term stock returns are following by unexpected advertising increase. We explore long-term abnormal stock returns for the sample of 1,501 advertising increase by 548 firms from 1990 to 2005. We use Fama and French three-factor model and Carhart four-factor model to examine whether there are any long-term abnormal stock returns across three and five year.
As our results shown, firms that substantially increase advertising investment subsequently achieve negative bench mark-adjusted returns. Moreover, we examine operating performance for the sample of 1,042 advertising increase by 420 firms from 1990 to 2005, and it provide similar result, that is, advertising spending doesn’t provide positive long-term performance. Over-advertising is considered one of factor in our result, firms increase allocate too many resources on advertising budget. Although firms increase advertising budget in order to generate cash flows, however, it’s obvious that firms with unexpected advertising expenditure don’t gather long-term abnormal stock and operating performance.

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