Movie Stars and the Volatility of Movie Revenues
Amit Joshi
Journal of Media Economics, 2015, vol. 28, issue 4, 246-267
Abstract:
Research has found conflicting results regarding the profitability of movies that have big-name stars. Why then, are stars selected to act in movies? Using the concepts of risk, volatility, and brand loyalty, this research proposes that although stars may not guarantee profits, their presence results in lower weekly revenue volatility. Using a database comprising 41 stars and their presence in 467 movies from over a 26-year period, this study finds broad support for this hypothesis.
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jmedec:v:28:y:2015:i:4:p:246-267
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DOI: 10.1080/08997764.2015.1094079
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