697
Views
2
CrossRef citations to date
0
Altmetric
Original Research Articles

Celebrity Endorser Scandals and Competitor Firm Value

, &
Pages 262-277 | Received 01 Mar 2022, Accepted 01 Apr 2023, Published online: 09 May 2023

References

  • Agrawal, Jagdish, and Wagner A. Kamakura. 1995. “The Economic Worth of Celebrity Endorsers: An Event Study Analysis.” Journal of Marketing 59 (3):56–62. doi:10.2307/1252119
  • Ahmed, Parvez, John Gardella, and Sudhir Nanda. 2002. “Wealth Effect of Drug Withdrawals on Firms and Their Competitors.” Financial Management 31 (3):21–41. doi:10.2307/3666313
  • Alba, Joseph W., and Amitava Chattopadhyay. 1986. “Salience Effects in Brand Recall.” Journal of Marketing Research 23 (4):363–9. doi:10.2307/3151812
  • Anderson, Eric T., and Duncan Simester. 2013. “Advertising in a Competitive Market: The Role of Product Standards, Customer Learning, and Switching Costs.” Journal of Marketing Research 50 (4):489–504. doi:10.1509/jmr.11.0538
  • Barnett, Michael L., and Andrew A. King. 2008. “Good Fences Make Good Neighbors: A Longitudinal Analysis of an Industry Self-Regulatory Institution.” Academy of Management Journal 51 (6):1150–70. doi:10.5465/amj.2008.35732609
  • Bartz, Sherry, Alexander Molchanov, and Philip A. Stork. 2013. “When a Celebrity Endorser is Disgraced: A Twenty-Five-Year Event Study.” Marketing Letters 24 (2):131–41. doi:10.1007/s11002-013-9229-2
  • Bergkvist, Lars, and Kris Qiang Zhou. 2016. “Celebrity Endorsements: A Literature Review and Research Agenda.” International Journal of Advertising 35 (4):642–63. doi:10.1080/02650487.2015.1137537
  • Borah, Abishek, and Gerard J. Tellis. 2016. “Halo (Spillover) Effects in Social Media: Do Product Recalls of One Brand Hurt or Help Rival Brands?” Journal of Marketing Research 53 (2):143–60. doi:10.1509/jmr.13.0009
  • Brown, Stephen J., and Jerold B. Warner. 1985. “Using Daily Stock Returns: The Case of Event Studies.” Journal of Financial Economics 14 (1):3–31. doi:10.1016/0304-405X(85)90042-X
  • Carrillat, Francois A., and Jasmina Ilicic. 2019. “The Celebrity Capital Life Cycle: A Framework for Future Research Directions on Celebrity Endorsement.” Journal of Advertising 48 (1):61–71. doi:10.1080/00913367.2019.1579689
  • Carrillat, Francois A., Alain d‘Astous, and Haralambos Christianis. 2014. “Guilty by Association: The Perils of Celebrity Endorsement for Endorsed Brands and Their Direct Competitors.” Psychology & Marketing 31 (11):1024–39. doi:10.1002/mar.20750
  • Chen, Sheng-Syan, Kim Wai Ho, and Kueh Hwa Ik. 2005. “The Wealth Effect of New Product Introductions on Industry Rivals.” The Journal of Business 78 (3):969–96. doi:10.1086/429650
  • Diestre, Luis, and Nandini Rajagopalan. 2014. “Toward an Input-Based Perspective on Categorization: Investor Reactions to Chemical Accidents.” Academy of Management Journal 57 (4):1130–53. doi:10.5465/amj.2011.1096
  • Eckbo, B. Espen. 1983. “Horizontal Mergers, Collusion, and Stockholder Wealth.” Journal of Financial Economics 11 (1–4):241–73. doi:10.1016/0304-405X(83)90013-2
  • Edeling, Alexander, Shuba Srinivasan, and Dominique M. Hanssens. 2021. “The Marketing–Finance Interface: A New Integrative Review of Metrics, Methods, and Findings and an Agenda for Future Research.” International Journal of Research in Marketing 38 (4):857–76. doi:10.1016/j.ijresmar.2020.09.005
  • Elberse, Anita, and Jeroen Verleun. 2012. “The Economic Value of Celebrity Endorsements.” Journal of Advertising Research 52 (2):149–65. doi:10.2501/JAR-52-2-149-165
  • Fama, Eugene F., and Kenneth R. French. 2016. “Dissecting Anomalies with a Five-Factor Model.” Review of Financial Studies 29 (1):69–103. doi:10.1093/rfs/hhv043
  • Fazio, Russel H., Jeaw-Mei Chen, Elisabeth C. McDonel, and Steven J. Sherman. 1982. “Attitude Accessibility, Attitude-Behavior Consistency, and the Strength of the Object-Evaluation Association.” Journal of Experimental Social Psychology 18 (4):339–57. doi:10.1016/0022-1031(82)90058-0
  • Feldman, Jack M., and John G. Lynch. Jr. 1988. “Self-Generated Validity and Other Effects of Measurement on Belief, Attitude, Intention, and Behavior.” Journal of Applied Psychology 73 (3):421–35. doi:10.1037/0021-9010.73.3.421
  • Fosfuri, Andrea, and Marco S. Giarratana. 2009. “Masters of War: Rivals’ Product Innovation and New Advertising in Mature Product Markets.” Management Science 55 (2):181–91. doi:10.1287/mnsc.1080.0939
  • Gande, Amar, and Craig M. Lewis. 2009. “Shareholder-Initiated Class Action Lawsuits: Shareholder Wealth Effects and Industry Spillover.” Journal of Financial and Quantitative Analysis 44 (4):823–50. doi:10.1017/S0022109009990202
  • Gaur, Ajai, Shavin Malhotra, and Pengcheng Zhu. 2013. “Acquisition Announcements and Stock Market Valuations of Acquiring Firms’ Rivals: A Test of the Growth Probability Hypothesis in China.” Strategic Management Journal 34 (2):215–32. doi:10.1002/smj.2009
  • Geyskens, Inge, Katrijn Gielens, and Marnik G. Dekimpe. 2002. “The Market Valuation of Internet Channel Additions.” Journal of Marketing 66 (2):102–19. doi:10.1509/jmkg.66.2.102.18478
  • Gielens, Katrijn, Linda M. van de Gucht, Jan-Benedict E. M. Steenkamp, and Marnik G. Dekimpe. 2008. “Dancing with a Giant: The Effect of Wal-Mart’s Entry into the United Kingdom on the Performance of European Retailers.” Journal of Marketing Research 45 (5):519–34. doi:10.1509/jmkr.45.5.519
  • Goldman, Eitan, Urs Peyer, and Irina Stefanescu. 2012. “Financial Misrepresentation and Its Impact on Rivals.” Financial Management 41 (4):915–45. doi:10.1111/j.1755-053X.2012.01211.x
  • Hadlock, Charles J., and Ramana Sonti. 2012. “Financial Strength and Product Market Competition: Evidence from Asbestos Litigation.” Journal of Financial and Quantitative Analysis 47 (1):179–211. doi:10.1017/S0022109011000639
  • Herr, Paul M., Frank R. Kardes, and John M. Kim. 1991. “Effects of Word-of-Mouth and Product-Attribute Information on Persuasion: An Accessibility-Diagnosticity Perspective.” Journal of Consumer Research 17 (4):454–62. doi:10.1086/208570
  • Homburg, Christian, Josef Vollmayr, and Alexander Hahn. 2014. “Firm Value Creation through Major Channel Expansions: Evidence from an Event Study in the United States, Germany, and China.” Journal of Marketing 78 (3):38–61. doi:10.1509/jm.12.0179
  • Joshi, Amit, and Dominique M. Hanssens. 2010. “The Direct and Indirect Effects of Advertising Spending on Firm Value.” Journal of Marketing 74 (1):20–33. doi:10.1509/jmkg.74.1.20
  • Kang, Eugene. 2008. “Director Interlocks and Spillover Effects of Reputational Penalties from Financial Reporting Fraud.” Academy of Management Journal 51 (3):537–55. doi:10.5465/amj.2008.32626007
  • Kantar. 2021. "How Can Celebrities Help to Maximise the Brand Impact of Advertising?" Accessed December 10, 2021. https://www.kantar.com/inspiration/advertising-media/how-can-celebrities-help-to-maximise-the-brand-impact-of-advertising
  • Kashmiri, Saim, Cameron Duncan Nicol, and Liwu Hsu. 2017. “Birds of a Feather: Intra-Industry Spillover of the Target Customer Data Breach and the Shielding Role of IT, Marketing, and CSR.” Journal of the Academy of Marketing Science 45 (2):208–28. doi:10.1007/s11747-016-0486-5
  • Knittel, Christopher R., and Victor Stango. 2014. “Celebrity Endorsements, Firm Value, and Reputation Risk: Evidence from the Tiger Woods Scandal.” Management Science 60 (1):21–37. doi:10.1287/mnsc.2013.1749
  • Kolari, James W., and Seppo Pynnönen. 2010. “Event Study Testing with Cross-Sectional Correlation of Abnormal Returns.” Review of Financial Studies 23 (11):3996–4025. doi:10.1093/rfs/hhq072
  • Kolari, James W., and Seppo Pynnönen. 2011. “Nonparametric Rank Tests for Event Studies.” Journal of Empirical Finance 18 (5):953–71. doi:10.1016/j.jempfin.2011.08.003
  • Lang, Larry H. P., and René M. Stulz. 1992. “Contagion and Competitive Intra-Industry Effects of Bankruptcy Announcements.” Journal of Financial Economics 32 (1):45–60. doi:10.1016/0304-405X(92)90024-R
  • Louie, Therese A., Robert L. Kulik, and Robert Jacobson. 2001. “When Bad Things Happen to the Endorsers of Good Products.” Marketing Letters 12 (1):13–23. doi:10.1023/A:1008159717925
  • Louie, Therese A., and Carl Obermiller. 2002. “Consumer Response to a Firm’s Endorser (Dis)Association Decisions.” Journal of Advertising 31 (4):41–52. doi:10.1080/00913367.2002.10673684
  • Lynch, John G., Eric T. Bradlow, Joel C. Huber, and Donald R. Lehmann. 2015. “Reflections on the Replication Corner: In Praise of Conceptual Replications.” International Journal of Research in Marketing 32 (4):333–42. doi:10.1016/j.ijresmar.2015.09.006
  • MacKinlay, A. Craig. 1997. “Event Studies in Economics and Finance.” Journal of Economic Literature 35 (1):13–39.
  • McAlister, Leigh, Raji Srinivasan, and MinChung Kim. 2007. “Advertising, Research and Development, and Systematic Risk of the Firm.” Journal of Marketing 71 (1):35–48. doi:10.1509/jmkg.71.1.35
  • McWilliams, Abagail, and Donald Siegel. 1997. “Event Studies in Management Research: Theoretical and Empirical Issues.” Academy of Management Journal 40 (3):626–57. doi:10.2307/257056
  • Oxley, Joanne E., Rachelle C. Sampson, and Brian S. Silverman. 2009. “Arms Race or Détente? How Interfirm Alliance Announcements Change the Stock Market Valuation of Rivals.” Management Science 55 (8):1321–37. doi:10.1287/mnsc.1090.1022
  • Pacicco, Fausto, Luigi Vena, and Andrea Venegoni. 2018. “Event Study Estimations Using Stata: The Estudy Command.” The Stata Journal: Promoting Communications on Statistics and Stata 18 (2):461–76. doi:10.1177/1536867X1801800211
  • Parrino, Robert. 1997. “CEO Turnover and outside Succession. A Cross-Sectional Analysis.” Journal of Financial Economics 46 (2):165–97. doi:10.1016/S0304-405X(97)00028-7
  • Roehm, Michelle L., and Alice M. Tybout. 2006. “When Will a Brand Scandal Spill over, and How Should Competitors Respond?” Journal of Marketing Research 43 (3):366–73. doi:10.1509/jmkr.43.3.366
  • Russell, Michael, James Mahar, and Betsy Drewniak. 2005. “Examination of Stock Market Response to Publicity Surrounding Athletic Endorsers.” Marketing Management Journal 15 (2):67–79.
  • Rust, Roland T., and Ming-Hui Huang. 2012. “Optimizing Service Productivity.” Journal of Marketing 76 (2):47–66. doi:10.1509/jm.10.0441
  • Sahni, Navdeep S. 2016. “Advertising Spillovers: Evidence from Online Field Experiments and Implications for Returns on Advertising.” Journal of Marketing Research 53 (4):459–78. doi:10.1509/jmr.14.0274
  • Schimmer, Markus, Anton Levchenko, and Simon Müller. 2015. "EventStudyTools (Research Apps)." Accessed March 22, 2016. http://www.eventstudytools.com
  • Shapiro, Bradley T. 2018. “Positive Spillovers and Free Riding in Advertising of Prescription Pharmaceuticals: The Case of Antidepressants.” Journal of Political Economy 126 (1):381–437. doi:10.1086/695475
  • Song, Moon H., and Ralph A. Walkling. 2000. “Abnormal Returns to Rivals of Acquisition Targets: A Test of the Acquisition Probability Hypothesis.” Journal of Financial Economics 55 (2):143–71. doi:10.1016/S0304-405X(99)00048-3
  • Sood, Ashish, and Gerard J. Tellis. 2009. “Do Innovations Really Pay off? Total Stock Market Returns to Innovation.” Marketing Science 28 (3):442–56. doi:10.1287/mksc.1080.0407
  • Sorescu, Alina, Venkatesh Shankar, and Tarun Kushwaha. 2007. “New Product Announcements and Shareholder Value: Don’t Make Promises You Can’t Keep.” Journal of Marketing Research 44 (3):468–89. doi:10.1509/jmkr.44.3.468
  • Sorescu, Alina, Nooshin L. Warren, and Larisa Ertekin. 2017. “Event Study Methodology in the Marketing Literature: An Overview.” Journal of the Academy of Marketing Science 45 (2):186–207. doi:10.1007/s11747-017-0516-y
  • Takeda, Fumiko. 2022. “Do Sport Sponsorship Announcements Help or Hurt Rival Sponsors’ Market Values?” Journal of Advertising Research 62 (2):167–76. doi:10.2501/JAR-2022-007
  • Till, Brian D., and Terence A. Shimp. 1998. “Endorsers in Advertising: The Case of Negative Celebrity Information.” Journal of Advertising 27 (1):67–82. doi:10.1080/00913367.1998.10673543
  • Trostel, Albert O., and Mary Lippitt Nichols. 1982. “Privately-Held and Publicly-Held Companies: A Comparison of Strategic Choices and Management Processes.” Academy of Management Journal 25 (1):47–62. doi:10.5465/256023
  • Yannopoulos, Peter. 2012. “Celebrity Advertising: Literature Review and Propositions.” World Review of Business Research 2 (4):24–36.
  • Yu, Xin, Peng Zhang, and Ying Zheng. 2015. “Corporate Governance, Political Connections, and Intra-Industry Effects: Evidence from Corporate Scandals in China.” Financial Management 44 (1):49–80. doi:10.1111/fima.12064

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.