The Economic Worth of Celebrity Endorsers: An Event Study Analysis

1995 ◽  
Vol 59 (3) ◽  
pp. 56-62 ◽  
Author(s):  
Jagdish Agrawal ◽  
Wagner A. Kamakura
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Economic Value ◽  
The United States ◽  
Extensive Literature ◽  
Celebrity Endorsement ◽  
Celebrity Endorsements ◽  
Expected Return ◽  
Business Press ◽  
The Impact

Celebrity endorsement has become a prevalent form of advertising in the United States. Despite extensive literature on the effects of celebrity endorsements on consumers’ brand attitudes and purchase intentions, little is known about the economic value of these endorsements. Research on this topic has typically focused on theories explaining how celebrity endorsements influence consumers’ attitudes and intentions. The authors assess the impact of celebrity endorsement contracts on the expected profitability of a firm by using event study methodology. Their approach assumes that the announcement of a celebrity endorsement contract, usually widely publicized in the business press, is used as information by market analysts to evaluate the potential profitability of endorsement expenditures, thereby affecting the firm's expected return. Announcements of 110 celebrity endorsement contracts were analyzed. Results indicate that, on average, the impact of these announcements on stock returns is positive and suggest that celebrity endorsement contracts are generally viewed as a worthwhile investment in advertising.

Celebrity endorsements and branding strategies: event study from India

2015 ◽  
Vol 24 (6) ◽  
pp. 633-645 ◽  
Author(s):  
Saravana Jaikumar ◽  
Arvind Sahay
Keyword(s):  
Event Study ◽  
Economic Value ◽  
Abnormal Returns ◽  
Celebrity Endorsements ◽  
Stock Market Returns ◽  
Content Type ◽  
Study Results ◽  
Branding Strategies ◽  
The Impact ◽  
Corporate Brands

Purpose – The purpose of this study is to evaluate the economic value of celebrity endorsements to Indian firms based on their branding strategy – corporate or house-of-brands – and their “congruence” or “fit” with the celebrity. The overall economic value of endorsements to firms in India, a moderately collectivist culture, is also assessed. Design/methodology/approach – Standard “event study” methodology is used to evaluate the economic value of endorsements under different branding strategies (47 endorsement announcements – 25 corporate brands and 22 house-of-brands). The impact of the level of congruence (assessed using brand personality scales) on abnormal returns is also examined. Findings – Event study results indicate significant positive abnormal returns for corporate brands and insignificant returns to house-of-brands. Moreover, the level of congruence is found to have an insignificant effect on endorsement announcement returns. Overall, celebrity endorsements result in positive economic value to Indian firms. Originality/value – This study evaluates the differences in the effectiveness of celebrity endorsements (which might form a significant part of advertising costs) to firms following different branding strategies. Findings from this study indicate that celebrity endorsement announcements from house-of-brands do not lead to any significant stock market returns (in terms of market value). Further, contrary to current literature, the results indicate that the congruence between brand and celebrity has no impact on returns to endorsements in India, warranting further examination of whether congruence or likeability is important in endorsements.

scholarly journals The Effect of China-U.S. Trade Dispute on Chinese Stock Market: New Evidence from the Event Study Analysis

2020 ◽  
pp. 105-117
Author(s):  
Fuzhong Chen ◽  
Di Yu
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Event Study ◽  
Banking Sector ◽  
Abnormal Returns ◽  
The United States ◽  
Chinese Stock Market ◽  
Study Analysis ◽  
Trade Dispute ◽  
The Impact

In 2018, the China-U.S. trade dispute started, which brings heterogeneous impacts on the global economy. The purpose of this paper is to examine the effects of tariffs targeting Chinese exporting commodities imposed by the U.S. on the Chinese stock market by utilizing the event study analysis. 10 industries' stock returns between Jan. 3rd , 2017, and Apr. 3rd , 2020 were selected as the research objectives from the WIND database, according to the Chinese Shen Wan's classification standard. Results based on event study analysis show that: First, the China-U.S. trade dispute causes significant fluctuations to Chinese stock returns. Second, the impacts of the trade dispute are mainly negative, showing by the negative cumulative average abnormal returns in the export-oriented sectors when they are encountered with new tariffs imposed by the United States. However, the effects can also be positive because of the various situations of targeted industries, and the defensive measures taken by China. Third, the trade dispute also affects investors' views on the macro economy, in which the impact on the real economy can be transferred to other non-export-oriented industries, such as the banking sector. This study provides empirical evidence for China's policymakers to take measures in strengthening the independence of innovation, protecting intellectual property rights. Investors also need to equip themselves with more financial knowledge.

The Impact of Oil Price Fluctuations on Industry Stock Returns: Evidence from International Markets

2018 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Elias Randjbaran ◽  
Reza Tahmoorespour ◽  
Marjan Rezvani ◽  
Meysam Safari
Keyword(s):  
Stock Returns ◽  
Oil And Gas ◽  
Negative Relationship ◽  
The United States ◽  
Oil Price ◽  
Price Variation ◽  
Price Changes ◽  
Price Fluctuations ◽  
Food And Beverage ◽  
The Impact

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

scholarly journals Dual MD–MPH Degree Students in the United States: Moving the Medical Workforce Toward Population Health

2021 ◽  
pp. 003335492097842
Author(s):  
Jo Marie Reilly ◽  
Christine M. Plepys ◽  
Michael R. Cousineau
Keyword(s):  
Public Health ◽  
United States ◽  
Population Health ◽  
Health Care Policy ◽  
The United States ◽  
Extensive Literature ◽  
Master Of Public Health ◽  
Telephone Interviews ◽  
Public Health Training ◽  
The Impact

Objective A growing need exists to train physicians in population health to meet the increasing need and demand for physicians with leadership, health data management/metrics, and epidemiology skills to better serve the health of the community. This study examines current trends in students pursuing a dual doctor of medicine (MD)–master of public health (MPH) degree (MD–MPH) in the United States. Methods We conducted an extensive literature review of existing MD–MPH databases to determine characteristics (eg, sex, race/ethnicity, MPH area of study) of this student cohort in 2019. We examined a trend in the MD community to pursue an MPH career, adding additional public health and health care policy training to the MD workforce. We conducted targeted telephone interviews with 20 admissions personnel and faculty at schools offering MD–MPH degrees in the United States with the highest number of matriculants and graduates. Interviews focused on curricula trends in medical schools that offer an MD–MPH degree. Results No literature describes the US MD–MPH cohort, and available MD–MPH databases are limited and incomplete. We found a 434% increase in the number of students pursuing an MD–MPH degree from 2010 to 2018. The rate of growth was greater than the increase in either the number of medical students (16%) or the number of MPH students (65%) alone. Moreover, MD–MPH students as a percentage of total MPH students more than tripled, from 1.1% in 2010 to 3.6% in 2018. Conclusions As more MD students pursue public health training, the impact of an MPH degree on medical school curricula, MD–MPH graduates, and MD–MPH career pursuits should be studied using accurate and comprehensive databases.

Does the second wave of COVID-19 undermine corporate immunity? International evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huy Viet Hoang ◽  
Cuong Nguyen ◽  
Khanh Hoang
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Fixed Effects ◽  
Management Strategies ◽  
The United States ◽  
Least Square ◽  
Content Type ◽  
The Impact ◽  
Second Wave ◽  
Practical Implications

PurposeThis study compares the impact of the COVID-19 pandemic on stock returns in the first two waves of infection across selected markets, given built-in corporate immunity before the global outbreak.Design/methodology/approachThe data are collected from listed firms in five markets that have experienced the second wave of COVID-19 contagion, namely the United States (US), Australia, China, Hong Kong and South Korea. The period of investigation in this study ranges from January 24 to August 28, 2020 to cover the first two COVID-19 waves in selected markets. The study estimates the research model by employing the ordinary least square method with fixed effects to control for the heterogeneity that may confound the empirical outcomes.FindingsThe analysis reveals that firms with larger size and more cash reserves before the COVID-19 outbreak have better stock performance under the first wave; however, these advantages impede stock resilience during the second wave. Corporate governance practices significantly influence stock returns only in the first wave as their effects fade when the second wave emerges. The results also suggest that in economies with greater power distance, although stock price depreciation was milder in the first wave, it is more intense when new cases again surge after the first wave was contained.Practical implicationsThis paper provides practical implications for corporate managers, policymakers and governments concerning crisis management strategies for COVID-19 and future pandemics.Originality/valueThis study is the first to evaluate built-in corporate immunity before the COVID-19 shock under successive contagious waves. Besides, this study accentuates the importance of cultural understanding in weathering the ongoing pandemic across different markets.

INFLUENCE OF DIGITAL MEDIA MARKETING AND CELEBRITY ENDORSEMENT ON CONSUMER PURCHASE INTENTION

2021 ◽  
Vol 14 (8) ◽  
pp. 145-158
Author(s):  
Raj Kumar Singh ◽  
Bijay Prasad Kushwaha ◽  
Tushita Chadha ◽  
Vivek Anand Singh
Keyword(s):  
Digital Media ◽  
Purchase Intention ◽  
Sampling Technique ◽  
Purchase Intentions ◽  
Purchase Intent ◽  
Celebrity Endorsement ◽  
Celebrity Endorsements ◽  
Consumer Purchase Intention ◽  
Marketing Tool ◽  
The Impact

Digital media marketing and celebrity endorsement have a significant impact on consumer purchase intent. The digital media marketing tools give marketers a competitive advantage in influencing customers and driving purchase intent toward their offerings. The study aims to examine the effectiveness of digital media as well as the impact of celebrity endorsements on consumer purchase intentions. The purposive sampling technique was used to collect responses from 523 residents of the tri-city Chandigarh using a structured questionnaire. The findings advocate that celebrity endorsement is a substantial marketing tool for driving consumer purchase intention via digital media platforms. The indirect effect of celebrity endorsement on consumer purchase intention was also significant when digital marketing media was used as a meditating variable. The data analysis and validation of the conceptual framework were carried out using the PLS-SEM. The study's implications are discussed.

scholarly journals Can Rumor Clarification Eliminate the Effects of Rumors?

2020 ◽  
Vol 11 (1) ◽  
pp. 48-62 ◽  
Author(s):  
Peinan Ji ◽  
Xiangbin Yan ◽  
Guang Yu
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Return ◽  
Listed Companies ◽  
Cumulative Abnormal Return ◽  
Negative Sample ◽  
The Impact

This article analyzes the effects of rumor and official rumor clarification on Chinese stock returns under different rumor conditions using an event study. The results are based on a sample of 832 rumor clarification announcements from China Listed Companies spanning the period of 2015 to 2017. The results show that the average cumulative abnormal return after the rumor event is significantly positive in the positive rumor sample and neutral sample, and significantly negative in the negative rumor sample. After the clarification announcements, we find the announcements effective for the positive and neutral rumor sample, but not in the case of the negative sample. However, by comparing different clarification times of each sample, we find that the earlier the clarification time is, the smaller the impact on the companies in positive and negative rumor examples.

scholarly journals Macroeconomic News and Stock Returns in the United States and Germany

2006 ◽  
Vol 7 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Norbert Funke ◽  
Akimi Matsuda
Keyword(s):  
United States ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Prices ◽  
The United States ◽  
Good News ◽  
Macroeconomic News ◽  
Hourly Data ◽  
Different Types ◽  
The Impact

Abstract Using daily data for the January 1997 to June 2002 period, we analyze similarities and differences in the impact of macroeconomic news on stock returns in the United States and Germany. We consider 27 different types of news for the United States and 12 different types of news for Germany. For the United States, we present evidence for asymmetric reactions of stock prices to news. In a boom (recession) period, bad (good) news on GDP growth and unemployment or lower (higher) than expected interest rates may be good news for stock prices. In the period under consideration there is little evidence for asymmetric effects in Germany. However, in the case of Germany, international news appears at least as important as domestic news. There is no evidence that US stock prices are influenced by German news. The analysis of bi-hourly data for Germany confirms these results.

scholarly journals The Effects of Quantitative Easing Announcements on the Mortgage Market: An Event Study Approach

2019 ◽  
Vol 7 (1) ◽  
pp. 9 ◽  
Author(s):  
Gang Wang
Keyword(s):  
Interest Rates ◽  
Event Study ◽  
The United States ◽  
Mortgage Market ◽  
Quantitative Easing ◽  
Study Approach ◽  
Mortgage Rate ◽  
Mortgage Securities ◽  
The Impact ◽  
T Distribution

This paper uses event study analysis to estimate the impact of the United States Federal Reserve Bank’s (Fed) quantitative easing (QE) announcements on the mortgage market during the zero lower bound (ZLB) period. A total of 35 QE announcements are identified and their effects are evaluated. The best-fitting integrated generalized autoregressive conditional heteroskedasticity (IGARCH) model with skewed t distribution is used to measure the QE announcement effects on daily changes of the 30-year mortgage rate, the 30-year Treasury rate and the spread between them. Announcements suggesting the start of a new round of QE reduced the mortgage rate tremendously, while the effects of further news diminished. Announcements of an increase in mortgage-backed security purchases decreased the mortgage rate more than the Treasury rate and reduced the credit risk of holding mortgage securities over Treasury securities. The delayed effects of QE announcements on the mortgage rate were less than short-run effects but persistent. We also find that the previous literature overestimates QE effects on interest rates in general.

Impact of Celebrity Endorsement on Consumer Buying Behaviour in the State of Goa

2017 ◽  
Vol 7 (1) ◽  
pp. 45-58 ◽  
Author(s):  
Karuna Krishna Gauns ◽  
Subhash Kizhakanveatil Bhaskaran Pillai ◽  
Kaustubh Kamat ◽  
Ruey Feng Chen ◽  
Ling-Chen Chang
Keyword(s):  
Purchase Intention ◽  
Response Rate ◽  
Purchase Intentions ◽  
Logit Analysis ◽  
Celebrity Endorsement ◽  
Celebrity Endorsements ◽  
Demographic Profiles ◽  
Buying Behaviour ◽  
The Impact ◽  
Structured Questionnaire

Celebrities have been involved in endorsing various activities since the eighteenth century. This article focuses on five aspects: to examine the present status of literature available on the effect of celebrity endorsement on consumer buying behaviour; to identify whether there is any association between the three groups of consumers (supporters/neutral/opposers of celebrity endorsement); applying multi-logit analysis to identify the probability of a consumer in becoming a supporter/neutral/opposer of the celebrity endorsement based on demographic profiles of consumers; to examine the celebrity attributes likely to influence consumer purchase intentions; and, finally, to examine the perception of the Goan consumers about celebrity endorsements. Literature review revealed that no major studies have been carried out on the impact of celebrity endorsement on Goan consumers’ buying behaviour. Hence, a survey using structured questionnaire was administered among 200 consumers during June 2015 to April 2016, with a response rate of 86 per cent (received responses were 171). It was found that a significant association exists between celebrity supporters/neutral/opposers with respect to age, gender, occupation and income level, except in case of education and location. Consumers also find celebrity endorsements more attractive and influential as compared to non-celebrity endorsements. Moreover, the tested attributes show positive relationship with purchase intention, except in case of expertise and trustworthiness of celebrity. In general, it can be concluded that celebrity attributes do impact the purchase intention of consumers.

Sign in / Sign up

Export Citation Format

Share Document