Consumer attention and company performance: Evidence from luxury companies

Hamid Cheraghali, Hannah Høydal, Caroline Lysebo and Peter Molnár

Finance Research Letters, 2023, vol. 58, issue PA

Abstract: Previous research has shown that investor attention, measured by Google searches for company tickers, can predict companies’ returns. However, for companies offering luxury goods in consumer-driven industries, consumer attention might be even more important. Therefore, for each company in the S&P Global Luxury Index we construct a measure of consumer attention based on Google searches for brands related to each company. Our findings suggest that consumer attention predicts the stock returns of these companies to a greater degree than investor attention. The economic significance of these findings is demonstrated by highly profitable trading strategies.

Keywords: Luxury goods; Consumer attention; Investor attention; Google searches; Stock returns (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006529

DOI: 10.1016/j.frl.2023.104280

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