The value of celebrity endorsements: A stock market perspective

Ding, Haina; Molchanov, Alexander; Stork, Philip A.

doi:10.1007/s11002-010-9117-y

Cited by 78 publications

(63 citation statements)

References 45 publications

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“…The literature on the topic finds a general positive effect on the endorsing firm's market value (Agrawal and Kamakura, 1995;Mathur et al, 1997), with some exceptions, such as the results of Ding et al (2011), which stress the fact that the expenses incurred may offset the benefits derived from the endorsement strategy.…”

Section: Introductionmentioning

confidence: 99%

Celebrity endorsers' performance on the “ground” and on the “floor”

Nicolau

Santa-María

2012

Mark Lett

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This article analyzes the relationship between two types of performances, one on the ground (of a tennis court) and the other on the floor (of the stock market). The empirical application looks into the tennis player, Rafael Nadal, and his endorsing firms. The findings show a positive reaction in the market value when the tennis player wins matches in the Grand Slams, the intriguing effect being the diminishing sensitivity pattern that such reaction shows and the absence of loss aversion.

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Section: Introductionmentioning

confidence: 99%

Celebrity endorsers' performance on the “ground” and on the “floor”

Nicolau

Santa-María

2012

Mark Lett

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“…Farrell, Karels, Monfort, & McClatchey (2000) explore the impact of Tiger Wood's tournament performance in 1996-1997 on Nike's firm value. Further, Ding, Molchanov, & Stork (2010) claime that celebrity endorsements restricted to technological products led to significant positive abnormal returns. Fizel, Mcneil, & Smaby (2008) examine 148 conventional athlete endorsements excluding mega-stars--their results showed that these endorsements had an insignificant impact on the firm's market value.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

“…The celebrity-endorsement strategy has been widely adopted in the field of product advertising since its inception (Bailey, 2007;Biswas, Biswas, & Das, 2006;Ding, Molchanov, & Stork, 2010;Erdogan, 1999;McCracker, 1989;Seno & Bryan, 2007). Many researchers have investigated the effectiveness of these types of strategies.…”

Section: Introduction and Literature Reviewmentioning

confidence: 99%

How Much Should Managers Pay for Celebrity Endorsements?

Tien¹

2017

IJMS

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Firms that choose to include celebrity endorsements in their advertisements are required to pay large sums in advance for these appearances, even though there is no guarantee of future sales of the target product. As such, managers require a method to evaluate the monetary value of including celebrity endorsements in advertising. In this study employing two experimental designs, we provide a rigorous and predictable framework to measure the potential marginal contribution of celebrity endorsements, which can serve as an objective standard for managers when calculating celebrity appearance budgets. Implications for researchers and practitioners are also discussed.

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“…Other events or announcements that have the tendency of triggering volatility of the stock market include rail accidents (Walker et al, 2006), product and market diversification (Jones & Danbolt, 2005), mergers and acquisitions (Liang, 2013), punitive damages (Lott & Karpoff, 1998), new product introduction , stock split (Subaih, 2013), natural disasters (Maierhofer, 2011), awards (Bu & Tian, 2012), corporate press releases (Neuhierl et al, 2013), media and celebrity endorsements (Ding et al, 2011;Doukas, 2013) and supply chain disruptions (Hendricks & Singhal, 2008). The impact of most of these announcements or events on stock performance is usually firm-specific, industry-specific or geographic-specific.…”

Section: Introductionmentioning

confidence: 99%

Review of Stock Markets’ Reaction to New Events: Evidence from Brexit

Quaye¹,

Mu²,

Abudu³

et al. 2016

JFRM

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Several studies have evolved to deal with the determinants of stock market volatility. However, there exists a gap in literature with regards to the interrelation among the broad categories of factors that trigger stock market reaction namely company fundaments, technical factors and market sentiments. This paper provides a holistic and comprehensive theoretical review of drivers of stock markets' reaction as well as designs an interrelated conceptual framework of the factors that influence investors' decision making to fill the gap in literature. Brexit is presented as a case study to illustrate how investors and stock markets are affected by new events or information. This study will reveal some of the global staggering effects of Brexit at the end of trading on June 24, 2016 in areas such as currencies, stock markets, banks, commodities, bonds, automakers and homebuilders as well as hedge fund. Barely 24 hours after the results of Brexit were declared; global stock markets lost about $2 trillion in value. The British pound plunged to almost $1.33, its lowest level in over 30 years against the US dollar and gold proved to be one of the few safe havens for investors on that day. In order for investors to insulate themselves against loses from Black Swans events, the conclusion of this study recommends some protective mechanisms for investors which include avoidance of overexposure and stockpiling of cash.

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The value of celebrity endorsements: A stock market perspective

Cited by 78 publications

References 45 publications

Celebrity endorsers' performance on the “ground” and on the “floor”

Celebrity endorsers' performance on the “ground” and on the “floor”

How Much Should Managers Pay for Celebrity Endorsements?

Review of Stock Markets’ Reaction to New Events: Evidence from Brexit

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