Media endorsements of new product announcements : a new marketing strategy

Lam, H.Y.T.; Doukas, A.J.; Guo, M.; Xiao, S.

doi:10.1111/eufm.12057

Media endorsements of new product announcements : a new marketing strategy

Lam, H.Y.T.; Doukas, A.J.; Guo, M.; Xiao, S.

Authors

H.Y.T. Lam

A.J. Doukas

Professor Michael Guo jie.guo@durham.ac.uk
Professor

Professor Sarah Xiao hong.xiao@durham.ac.uk
Professor

Abstract

This paper examines whether investors' decisions are influenced by the word content of newspaper reports of new product announcements. Using textual analysis we find that announcements of new products covered by financial newspapers with positive word content earn significant abnormal returns. These returns are 270 basis points higher than new products without positive word coverage, and such announcements bring negative impact to their rival firms' value. Our results suggest that the market reacts to the linguistic content of the new product announcement rather than to the announcement itself.

Citation

Lam, H., Doukas, A., Guo, M., & Xiao, S. (2016). Media endorsements of new product announcements : a new marketing strategy. European Financial Management, 22(3), 394-426. https://doi.org/10.1111/eufm.12057

Journal Article Type	Article
Acceptance Date	Oct 18, 2014
Online Publication Date	Dec 29, 2014
Publication Date	Jun 2, 2016
Deposit Date	Dec 10, 2014
Publicly Available Date	Dec 29, 2016
Journal	European Financial Management
Print ISSN	1354-7798
Electronic ISSN	1468-036X
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	22
Issue	3
Pages	394-426
DOI	https://doi.org/10.1111/eufm.12057
Keywords	Product launch, Event study, Media sentiment, Textual analysis, Industry rivals.
Public URL	https://durham-repository.worktribe.com/output/1448813

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Copyright Statement
This is the accepted version of the following article: Lam, H. Y. T., Doukas, A. J., Guo, J. and Xiao, S. (2016), Media Endorsements of New Product Announcements: A New Marketing Strategy. European Financial Management, 22(3): 394-426, which has been published in final form at http://dx.doi.org/10.1111/eufm.12057. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.