Proceedings of the 2019 3rd International Seminar on Education, Management and Social Sciences (ISEMSS 2019)

Negative News of Celebrities and Value Change in Companies with Celebrity Endorsements

Authors
Li Yuxin
Corresponding Author
Li Yuxin
Available Online September 2019.
DOI
10.2991/isemss-19.2019.68How to use a DOI?
Keywords
scandals of famous persons; endorsed companies; event study method
Abstract

It is an important marketing strategy for Chinese companies to use celebrities in the movie and television industry for endorsements to help promote their products and improve their business performance. However, will the negative news of the celebrities have a negative impact on those companies? By using the event study method to screen 56 samples from 2005 to 2018 through the Internet, this paper conducted an empirical study on the changes of the cumulative abnormal returns of the listed companies with celebrity endorsements due to the negative news of their endorsers. The results showed that the cumulative abnormal returns of the listed companies with celebrity endorsements were negative due to the negative news of their endorsers. However, altogether, such returns failed to pass the significance test. The negative news of their endorsers have no significant negative impact on the values of those companies.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2019 3rd International Seminar on Education, Management and Social Sciences (ISEMSS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
September 2019
ISBN
10.2991/isemss-19.2019.68
ISSN
2352-5398
DOI
10.2991/isemss-19.2019.68How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Li Yuxin
PY  - 2019/09
DA  - 2019/09
TI  - Negative News of Celebrities and Value Change in Companies with Celebrity Endorsements
BT  - Proceedings of the 2019 3rd International Seminar on Education, Management and Social Sciences (ISEMSS 2019)
PB  - Atlantis Press
SP  - 359
EP  - 362
SN  - 2352-5398
UR  - https://doi.org/10.2991/isemss-19.2019.68
DO  - 10.2991/isemss-19.2019.68
ID  - Yuxin2019/09
ER  -