Cookies

We use cookies to ensure that we give you the best experience on our website. By continuing to browse this repository, you give consent for essential cookies to be used. You can read more about our Privacy and Cookie Policy.


Durham Research Online
You are in:

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.

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.

Item Type:Article
Keywords:Product launch, Event study, Media sentiment, Textual analysis, Industry rivals.
Full text:(AM) Accepted Manuscript
Download PDF
(1176Kb)
Status:Peer-reviewed
Publisher Web site:http://dx.doi.org/10.1111/eufm.12057
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 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.
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

Save or Share this output

Export:
Export
Look up in GoogleScholar