The Economic Worth of Product Placement in Prime-time Television Shows

2016 ◽  
Vol 58 (2) ◽  
pp. 253-275
Author(s):  
Genevieve Begy ◽  
Vishal Talwar
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Product Placement ◽  
Prime Time ◽  
Cumulative Abnormal Return ◽  
Cross Sectional ◽  
Television Shows ◽  
Economic Worth ◽  
Sectional Analysis

Product placement is fiercely being courted by firms as a consequence of the declining credibility of traditional broadcast advertising and the ‘30-second spot’. Very little research analysing its economic worth exists outside of the realm of film, however. This paper responds by applying a consistent measure of placement effectiveness to television through use of event analyses. It finds a mean cumulative abnormal return of 0. 79% in a sample of 264 placements from the 2011-12 prime-time season, confirming that product placement in television is positively and significantly associated with movement in firms' stock prices. Placement in a season premiere has significantly higher mean returns than in a non-pivotal episode, irrespective of whether the firm places the product in both episodes. A cross-sectional analysis of placement, episode and show factors suggests that the duration of placement and one-hour show length are positively associated with stock price movement. Placement in a show's debut season is adversely associated to worth.

The Worth of Product Placement in Successful Films: An Event Study Analysis

2009 ◽  
Vol 73 (4) ◽  
pp. 44-63 ◽  
Author(s):  
Michael A. Wiles ◽  
Anna Danielova
Keyword(s):  
Event Study ◽  
Stock Prices ◽  
Abnormal Returns ◽  
Product Placement ◽  
Purchase Intent ◽  
Cross Sectional ◽  
Product Placements ◽  
Film Content ◽  
Sectional Analysis ◽  
Insight Into

As a result of the diminishing effectiveness of broadcast advertising, firms are increasingly turning to product placements in films and television to promote their products. A growing stream of product placement research has conducted surveys of consumer and practitioner views on the practice and experiments to gauge product placement's impact on brand awareness, attitudes, and purchase intent. However, there is no evidence of whether firms’ investments in film product placements are worthwhile. The event study of 126 product placements in successful films during 2002 reveals a mean cumulative abnormal return of .89% during the film's opening, indicating that product placement in a successful film is associated with positive movements in firm stock prices. Cross-sectional analysis of the returns offers new insight into how product, film, and execution factors influence the placement's worth. The authors find that placement abnormal returns are enhanced by tie-in advertising and brand equity but are inhibited by audience absorption, critical acclaim, and violent film content. Placement modality, character associations, and blatancy also significantly affect the placement's value.

Stock Price Jumps and Cross-Sectional Return Predictability

2013 ◽  
Vol 48 (5) ◽  
pp. 1519-1544 ◽  
Author(s):  
George J. Jiang ◽  
Tong Yao
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Return ◽  
Return Predictability ◽  
Value Premium ◽  
The Other ◽  
Stock Return Predictability ◽  
Cross Sectional ◽  
Return Dynamics

AbstractWe identify large discontinuous changes, known as jumps, in daily stock prices and explore the role of jumps in cross-sectional stock return predictability. Our results show that small and illiquid stocks have higher jump returns to the extent that cross-sectional differences in jumps fully account for the size and illiquidity effects. Based on value-weighted portfolios, jumps also account for the value premium. On the other hand, jumps are not the cause of momentum or net share issue effects. The findings of our study shed new light on stock return dynamics and present challenges to conventional explanations of stock return predictability.

Can Derivative Information Predict Stock Price Jumps?

2015 ◽  
Vol 31 (3) ◽  
pp. 845
Author(s):  
Noe-Keol Kwark ◽  
Hyoung-Goo Kang ◽  
Sang-Gyung Jun
Keyword(s):  
Standard Deviation ◽  
Exchange Rates ◽  
Stock Prices ◽  
Stock Price ◽  
Implied Volatility ◽  
Stock Index ◽  
Rates Of Return ◽  
Cross Sectional ◽  
Put Options ◽  
The Cross

<p>This study examines the predictability of jumps in stock prices using options-trading information, the futures basis spread, the cross-sectional standard deviation of returns on components in the stock index, and exchange rates. A stock price jump was defined as a large fluctuation in the stock price that deviated from the distribution thresholds of the past rates of return. This empirical analysis shows that the implied volatility spread between ATM call and put options was a significant predictor for both upward and downward jumps, whereas the volatility skew was less significant. In addition, the futures basis spread was moderately significant for downward stock price jumps. Both the cross-sectional standard deviation of the rates of return on component stocks in the KOSPI 200 and the won-dollar exchange rates were significant predictors for both upward and downward jumps.</p>

Pharmaceutical R&D Spending and Threats of Price Regulation

2009 ◽  
Vol 45 (1) ◽  
pp. 239-264 ◽  
Author(s):  
Joseph Golec ◽  
Shantaram Hegde ◽  
John A. Vernon
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Natural Experiment ◽  
Price Regulation ◽  
Negative Effects ◽  
Firm Level ◽  
Cross Sectional ◽  
Price Changes ◽  
Health Security ◽  
Pharmaceutical Price

AbstractDo threats of pharmaceutical price regulation affect subsequent research and development (R&D) spending? This study uses the Clinton administration’s Health Security Act (HSA) of 1993 as a natural experiment to study this issue. We link events surrounding the HSA to pharmaceutical stock price changes and then examine the cross-sectional relation between firms’ stock price changes and their subsequent unexpected R&D spending changes. Results show that the HSA had significant negative effects on stock prices and firm-level R&D spending. Conservatively, the HSA reduced R&D spending by about $1 billion even though it never became law.

scholarly journals Market Reaction Analysis of Annual Report Award Announcement: An Event Study Using Abnormal Return, Trading Volume Activity, and Stock Price

2020 ◽  
Vol 4 (1) ◽  
pp. 340
Author(s):  
Fitri Astuti ◽  
Anggi Setya Prayoga
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Trading Volume ◽  
Annual Report ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Volume Activity ◽  
Event Window ◽  
Before And After

This study intends to examine the differences in market reaction around the announcement of the Annual Report Award which is not only measured by abnormal return but is also measured using trading volume activity and stock prices. The data used are quantitative data in the form of a list of companies that received the Annual Report Award for the 2015-2018 period, the daily closing price of the ARA-winning company in the event window, the composite stock price index, the number of shares traded, and the number of shares outstanding. The event window is selected for 11 days because the long window period will blend with the effects of other events or confounding effects. The results of the study concluded that the market reacted around the announcement of the Annual Report Award for the 2015-2018 period measured using abnormal returns, trading volume activity, and stock prices. There is no difference in abnormal returns before and after the announcement of the 2013-2016 Annual Report Award period. Instead there are differences in trading volume activity and stock prices before and after the announcement of the Annual Report Award for the 2015-2018 period.

scholarly journals Political Connection and Firm Value in Indonesia

2019 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Versiandika Yudha Pratama ◽  
Doddy Setiawan
Keyword(s):  
Firm Value ◽  
Stock Price ◽  
Abnormal Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Financial Sector ◽  
Political Connections ◽  
Political Connection ◽  
Cumulative Abnormal Return

<p>This is an event study aims to determine the influence of political connections to firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange. This study used secondary data in the form of stock price and annual financial statement obtained the Indonesia Stock Exchange website, Indonesian Capital Market Directory, and other relevant sources. In sampling technique, purposive sampling method is used where 272 non-financial sector companies are selected. The data is examined by using multiple linear regression to measure the influence of political connections on firm value. The findings of this study revealed that political connections have an effect on firm value as measured by cumulative abnormal return on non-financial sector companies listed in Indonesia Stock Exchange.</p>

scholarly journals Reaksi saham perbankan terhadap penurunan BI rate April 2016 dan implikasinya terhadap strategi investasi: pengujian terhadap hipotesis pasar efisien

2018 ◽  
Vol 6 (1) ◽  
pp. 9
Author(s):  
Triyaryati N ◽  
Kusumadewi NMW
Keyword(s):  
Interest Rate ◽  
Market Efficiency ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Banking Sector ◽  
Relevant Information ◽  
Investment Strategy ◽  
Rate Policy ◽  
Efficiency Theory

Stagnation of BI Rate during year 2015 on 7.5% level, causing a profit growth deceleration and stock price compulsion in banking sector. BI rate and BI 7-Day Repo Rate policy announcement on April 21st 2016 is a new relevant information for banking sector in Indonesia. Because both are as an interest rate reference for determining deposit and landing interest rate, which directly related to banking sector profit and expenses. This study verify an abnormal return existence during the announcement, in order to observe the market ability to directly absorb the relevant information and reflected in the stock price of the banking sector. The procedures which run in this study is also to test the market efficiency theory in the semi strong form.This study indicate that during the observation period there is no existence of abnormal return, which is show that the market are directly absorb the new relevant information and reflected it in the stock prices. Thus the market indicate as semi strong efficient.Investor decision making implication refer to this study result is there will not be an optimal return for them if they applied an active investment strategy during this period.So, in this semi strong market efficiency situation, it is better for the investor not to apply the active investment strategy.

Market Reactions to Disclosure of Reportable Events

2003 ◽  
Vol 22 (1) ◽  
pp. 181-194 ◽  
Author(s):  
J. Scott Whisenant ◽  
Srinivasan Sankaraguruswamy ◽  
K. Raghunandan
Keyword(s):  
Information Content ◽  
Internal Control ◽  
Stock Prices ◽  
Stock Price ◽  
Financial Statement ◽  
Expected Returns ◽  
Differential Information ◽  
Cumulative Abnormal Return ◽  
Market Reactions ◽  
Interim Period

This study investigates the information content of FRR No. 31 reportable events (SEC 1988) communicated by auditors to clients in the two fiscal years and interim period preceding auditor changes. Reportable events identify weaknesses in internal control and problems related to the reliability of management representations and/or financial statement reliability. We examine 1,264 auditor changes (with available stock price data) over the period 1993 to 1996, including 118 companies with reportable events. Our findings suggest that reportable events disclosed in Form 8-K filings of auditor changes are considered by investors to have information content. We find a −2.75 percent (−5.53 percent) cumulative abnormal return over a three-day (seven-day) announcement period surrounding the disclosure of reportable events in Form 8-K filings. The conclusion that reportable events offer useful information to investors is robust to alternative specifications of expected returns and to controls for other disclosures (resignations and disagreements) made when auditor changes occur. Further tests also highlight differential information content among the types of reportable events. Specifically, stock prices act as if investors find reportable events about reliability issues more informative than reportable events about internal control weaknesses.

scholarly journals Macroeconomic Approach of the Determinants of Stock Price Movements in Jordan

2016 ◽  
Vol 8 (2) ◽  
pp. 60 ◽  
Author(s):  
Imad Zeyad Ramadan
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Least Square ◽  
Cross Sectional ◽  
Industrial Firms ◽  
Macroeconomic Factors ◽  
Industrial Companies ◽  
Inflation Rates ◽  
Negative Effect

<p>This study aimed to test the effect of macroeconomic factors on the movements of stock prices of Jordanian industrial companies listed in Amman Stock Exchange (ASE) in order to provide empirical evidence about the determinants of the movements of stock prices. To achieve this objective, all the 77 Jordanian industrial firms listed at ASE for fifteen years from 2000 to 2014 have been selected, resulting in 1054 firm-year observations. The unbalanced pooled cross-sectional time series multiple least square regression method has been used to present data analysis. while the experiential results showed significant negative effect of two of the macroeconomic factors, namely, interest and inflation rates, on the movements of the Jordanian industrial companies stock prices, results found that the effect of money supply and GDP on the movements of stock prices were significantly positive. These results are consistent with (Mukherjee and Naka, 1995, Zhao, 1999 &amp; Udegbunam and Eriki, 2001, Al-Qenae, Li &amp; Wearing, 2002, Dimitrios Tsoukalas, 2003 , Ibrahim 2003; Chaudhuri and Smiles, 2004)</p>

scholarly journals Analisis Pengaruh Stock Split Terhadap Harga Saham, Abnormal Return Dan Risiko Sistematik Saham Perusahaan (Studi Pada Perusahaan Yang Terdaftar Di Bei 2016-2018)

2019 ◽  
Vol 4 (1) ◽  
pp. 95
Author(s):  
Nindi Vaulia Puspita ◽  
Kartika Yuliari
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Abnormal Return ◽  
Systematic Risk ◽  
Stock Splits ◽  
Reverse Stock Splits ◽  
Stock Split ◽  
Before And After ◽  
Reverse Stock Split ◽  
Corporate Actions

The purpose of this study is to analyze the effect of stock split on stock price, abnormal return and systematic risk of stock, The sample in this study as many as 82 companies  are doing stock splits in the period 2016-2018 with the requirement that no other corporate actions such as mergers and acquisitions or reverse stock splits. The result indicated there are differences in stock prices and abnormal return before and after the stock split event, and the systematic risk no difference after and before the stock split event. This condition because of the strong internal factors of the company, this is indicated by no effect of systematic risk (beta) on stocks due to unstable market because investors buy stocks in the short term so they are not affected by systematic risk. Penelitian bertujuan untuk melakukan analisis pengaruh stock split terhadap harga saham, abnormal return dan risiko sistematik saham, sampel penelitian terdiri dari  82 perusahaan yang melakukan stock split dalam rentang waktu 2016-2018 dengan persyaratan tidak ada corporate action yang lain seperti merger dan akuisisi ataupun reverse stock split. Hasil penelitian menunjukkan terdapat perbedaan harga saham sebelum dan sesudah peristiwa stock split, adanya perbedaan abnormal return sebelum dan sesudah stock split dan  yang terakhir risiko sistematik menghasilkan tidak adanya perbedaan setelah dan sebelum adanya peristiwa stock split, kondisi ini karena kuatnya factor internal perusahaan, hal ini ditunjukkan dengan tidak adanya pengaruh risiko sistematik (beta) terhadap saham yang disebabkan kondisi pasar yang tidak stabil menyebabkan investor membeli saham dengan tujuan jangka pendek sehingga tidak terpengaruh dengan risiko sistematik.

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