The purpose of the study is investigating the relationship between advertising expenditures and firm value in Tehran Stock Exchange (TSE). In this study, the pool data from 100 companies are analyzed by the use of consolidated regression for the period of 2004-2008. The first hypothesis analyses the relationship between ratio advertising expenditures to total assets and firm value. The second hypothesis investigates the relationship between ratio advertising expenditures to net sales and firm value. The results show that none of the hypotheses are confirmed. In other words, there is no significant relationship between ratio advertising expenditures to total assets and firm value. However, no significant relationship is observed between ratio advertising expenditures to net sales and firm value.