Does celebrity spokesperson signal firm performance? Evidence from a drug scandal in China

Wenyun Yao, Jiahui Wei, Yongjian Shen, Yan Deng and Ali Kutan

Finance Research Letters, 2020, vol. 34, issue C

Abstract: Using an event study, we investigate the impact of news regarding a drug scandal involving a celebrity spokesperson who was hired by the Dongfeng Motor Company in China on company performance. We find that celebrity spokespeople news may have significant predictive power on company stock returns and hence on firm performance, supporting the signaling hypothesis.

Keywords: Public figure behavior; Celebrity endorsement; Firm performance (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319303204

DOI: 10.1016/j.frl.2019.07.010

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