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Consumer attention and company performance: Evidence from luxury companies

Author

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  • Cheraghali, Hamid
  • Høydal, Hannah
  • Lysebo, Caroline
  • Molnár, Peter

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.

Suggested Citation

  • Cheraghali, Hamid & Høydal, Hannah & Lysebo, Caroline & Molnár, Peter, 2023. "Consumer attention and company performance: Evidence from luxury companies," Finance Research Letters, Elsevier, vol. 58(PA).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pa:s1544612323006529
    DOI: 10.1016/j.frl.2023.104280
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