| dc.description.abstract | Do celebrity endorsements impact the stock price? In this thesis, we aim to answer this by
analyzing a unique sample of 155 announcements from 2009 to 2023 by firms listed in Europe
and the USA, using announcements from social media, press releases, and news sources.
Employing the event study methodology, we observe no significant abnormal returns on the
announcement day. However, in the USA, significant negative returns occur two days before
announcements, indicating potential information leaks, followed by positive returns postannouncement.
In Europe, we document no significant abnormal returns, indicating that the
benefits of celebrity endorsements are closely equivalent to their costs. In addition, we
examine if the abnormal returns depend on several characteristics. Our findings suggest lower
returns for male celebrities compared to women. Additionally, the celebrity-firm match-up
negatively influences abnormal returns in the USA. In Europe, celebrity popularity negatively
affects the stock price, and technology firms experience a significantly positive impact from
endorsements. | en_US |
