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

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Listed:
  • Yao, Wenyun
  • Wei, Jiahui
  • Shen, Yongjian
  • Deng, Yan
  • Kutan, Ali M.

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.

Suggested Citation

  • Yao, Wenyun & Wei, Jiahui & Shen, Yongjian & Deng, Yan & Kutan, Ali M., 2020. "Does celebrity spokesperson signal firm performance? Evidence from a drug scandal in China," Finance Research Letters, Elsevier, vol. 34(C).
    • Handle: RePEc:eee:finlet:v:34:y:2020:i:c:s1544612319303204
    DOI: 10.1016/j.frl.2019.07.010
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    References listed on IDEAS

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