Impact of Advertising on Liquidity Risk Manoj K. Agarwal Srinivasan Krishnamurthy Ashwin Malshe** Please don’t cite or circulate without the authors’ permission ** Manoj K. Agarwal (agarwal@binghamton.edu Tel: 607-777-6860) is Professor of Marketing, and Ashwin Malshe (amalshe1@binghamton.edu Tel: 607-777-6280) is a Doctoral Candidate in Marketing, School of Management, Binghamton University, State University of New York, Binghamton, New York 13902. Srinivasan Krishnamurthy (srini_krishnamurthy@ncsu.edu Tel: 919-515-0156) is Associate Professor of Finance, College of Management, North Carolina State University, Raleigh, North Carolina 27695. Names are in alphabetical order. This article is based on one of the essays of the third author’s doctoral dissertation at Binghamton University. Acknowledgements: We thank Weimin Liu for providing us with helpful comments and some of the data, and Viral Acharya, Subimal Chatterjee, Yelena Larkin, Mark Leary, Vithala Rao, Alina Sorescu, Kapil Tuli, and participants at the 2009 ―Marketing Strategy meets Wall Street‖ conference at Emory University and the 2009 BBCRST conference at Cornell University for helpful comments and suggestions.