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Media endorsements of new product announcements : a new marketing strategy.

Lam, H. Y. T. and Doukas, A. J. and Guo, M. and Xiao, S. (2016) 'Media endorsements of new product announcements : a new marketing strategy.', European financial management., 22 (3). pp. 394-426.


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.

Item Type:Article
Keywords:Product launch, Event study, Media sentiment, Textual analysis, Industry rivals.
Full text:(AM) Accepted Manuscript
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Publisher 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 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Date accepted:18 October 2014
Date deposited:12 December 2014
Date of first online publication:29 December 2014
Date first made open access:29 December 2016

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