This paper aims to verify relations between advertising and firm value based on time series data. After so called the Lehman Shock in 2008, Japanese firms have sharply cut advertising expenditures. Even though prior studies have shown that advertising positively influence firm value, there is no empirical assessment based on the recent data after the Leman Shock. The authors verify the impact of advertising on the firm value by time series data from 2000 to 2008 in Japan. The result shows that advertising has positively correlated on firm value since 2000. The result suggests that advertising could improve firm value even after the Lehman Shock.
