Celebrity Endorsements, Firm Value, and Reputation Risk: Evidence from the Tiger Woods Scandal

• 成果类型: Article
• 署名作者: Knittel, Christopher R.; Stango, Victor
• 署名单位: Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; University of California System; University of California Davis
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2013.1749
• 发表日期: 2014
• 页码: 21-37
• 关键词: celebrity endorsers; event studies; reputation risk

摘要

We estimate the stock market effects of the Tiger Woods scandal on his sponsors and sponsors' competitors. In the 10-15 trading days after the onset of the scandal, the full portfolio of sponsors lost more than 2% of market value, with losses concentrated among the core three sponsors: Electronic Arts, Nike, and PepsiCo (Gatorade). Sponsors' day-by-day losses correlate strongly with Google search intensity regarding the endorsement-related impact of the scandal, as well as with qualitative indicators of endorsement-related news. At least some sponsors' losses were competitors' gains, suggesting that endorsement deals are partially a business-stealing strategy. However, competitors who were themselves celebrity endorsement intensive fared relatively worse than those who were not endorsement intensive, and that difference also correlates day by day with news/search intensity regarding the scandal. It appears that the scandal sent a negative marketwide signal about the reputation risk associated with celebrity endorsements.