The Influence of Advertising Award on Stock Performance

Abstract

Advertising is a good way to help a company to boost its image so that we can observe the increase tendency of advertising budget each year Furthermore because of the convenience of internet and the large number of people on surfing the internet firms begin reducing advertisement on traditional medium and increasing online advertising Previous literatures judged advertisement by winning awards and pointed out that the outstanding advertisements are significant on attracting customers’ attention However stock market did not react obviously about award-winning announcement of advertising Therefore in this study we focus on the internet advertising and collect the sample firms which won the Webby awards Through observing abnormal returns we can know investors’ attitude toward outstanding internet advertising This study observes the relationship between outstanding internet advertising and firm value We use event study methodology to analyze the cumulative abnormal return (CAR) for award announcement and see buy-and-hold abnormal return (BHAR) to check the stock performance with outstanding advertisements The samples are the firms which won the Webby awards from 2007 to 2014 and use their stock price to measure their CARs and BHARs Finally we look over other control variables which may affect our result by the regression analysis

Date of Award	2016 Feb 1
Original language	English
Supervisor	Shao-Chi Chang (Supervisor)